Arrangements by which politically connected firms receive economic favors are a common feature around the world, but little is known of the form or effects of influence in business–government relationships. We present a simple model in which influence requires firms to provide goods of...

In this paper, we test the argument that the sizeable reduction in aggregate aid levels in the 1990s was due to the end of the Cold War. We test two different models using a dynamic econometric specification on a panel of 17 donor countries, spanning the years 1970-97. We find aid to be...

We argue that the tilt toward donor interests over recipient needs in aid allocation and practices may be particularly strong in new partnerships. Using the natural experiment of Eastern transition we find that commercial and strategic concerns influenced both aid flows and entry in the first...