The diversion of development aid to the recipient's military may be one explanation why aid is often found to be ineffective in promoting economic growth and development. Previous studies have not derived the causal effects of development aid on military expenditure. Using a new instrumental...

This paper investigates whether the aid allocation behavior of US Western allies during the Cold War reflected ideological motives. While there is extensive evidence on the ideological motivations underlying the US aid program during the Cold War, little is known about the behavior of western...