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Fueling Conflict? (De)Escalation and Bilateral Aid
Bluhm, Richard - 2016
This paper studies the effects of bilateral foreign aid on conflict escalation and de-escalation. We make three major …-sided and multifaceted nature of conflict. Second, we develop a novel empirical framework. We propose a dynamic ordered probit … aid on conflict by predicting bilateral aid flows based on electoral outcomes of donor countries that are exogenous to …
Persistent link: https://www.econbiz.de/10012979126
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Aid and Growth. New Evidence Using an Excludable Instrument
Dreher, Axel - 2017
We use an excludable instrument to test the effect of bilateral foreign aid on economic growth in a sample of 96 recipient countries over the 1974-2009 period. We interact donor government fractionalization with a recipient country's probability of receiving aid. The results show that...
Persistent link: https://www.econbiz.de/10012970832
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Does Development Aid Increase Military Expenditure?
Langlotz, Sarah - 2016
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...
Persistent link: https://www.econbiz.de/10012979665
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Geopolitics, Aid and Growth
Dreher, Axel - 2013
We investigate the effects of short-term political motivations on the effectiveness of foreign aid. Donor countries' political motives might reduce the effectiveness of conditionality, channel aid to inferior projects or affect the way aid is spent in other ways, reduce the aid bureaucracy's...
Persistent link: https://www.econbiz.de/10013079379
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The Costs of Favoritism : Is Politically-Driven Aid Less Effective?
Dreher, Axel; Klasen, Stephan; Vreeland, James Raymond; … - 2021
As is now well documented, aid is given for both political as well as economic reasons. The conventional wisdom is that politically-motivated aid is less effective in promoting developmental objectives. We examine the ex-post performance ratings of World Bank projects and generally find that...
Persistent link: https://www.econbiz.de/10013316223
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Harnessing Windfall Revenues : Optimal Policies for Resource-Rich Developing Economies
van der Ploeg, Rick - 2009
A windfall of natural resource revenue (or foreign aid) faces government with choices of how to manage public debt, investment, and the distribution of funds for consumption, particularly if the windfall is both anticipated and temporary. We show that the permanent income hypothesis prescription...
Persistent link: https://www.econbiz.de/10012764524
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Rogue Aid? The Determinants of China's Aid Allocation
Dreher, Axel - 2011
Foreign aid from China is often characterized as ‘rogue aid' that is not guided by recipient need but by China's national interests alone. However, no econometric study so far confronts this claim with data. We make use of various datasets, covering the 1956-2006 period, to empirically test to...
Persistent link: https://www.econbiz.de/10013120232
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Of Donor Coordination, Free-Riding, Darlings, and Orphans : The Dependence of Bilateral Aid on Other Bilateral Giving
Davies, Ronald B. - 2013
Using data from 1988 to 2007, we examine to what extent bilateral aid flows of an individual donor to a country depend on aid flows from all other bilateral and multilateral donors to that country. We thereby want to assess to what extent donor coordination, free-riding, selectivity,...
Persistent link: https://www.econbiz.de/10013083870
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Agglomeration and Aid
Brakman, Steven - 2007
A key issue in development economics is the explanation of core-periphery patterns around the world. Combining this issue with that of analyzing unilateral transfers (e.g. foreign aid) points in the direction of the use of New Economic Geography (NEG) models which, so far, has not been done...
Persistent link: https://www.econbiz.de/10012778412
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First Impressions : How Leader Changes Affect Bilateral Aid
Rommel, Tobias - 2017
This paper investigates a new mechanism to explain politically induced changes in bilateral aid. We argue that shifts in the foreign policy alignment between a donor and a recipient country following leadership changes induce reallocation of aid. This is due to heightened uncertainty of...
Persistent link: https://www.econbiz.de/10012967869