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 variable strategy, we examine whether bilateral development aid …

Chinese aid comes with few strings attached, allowing recipient country leaders to use it for domestic political … purposes. The vulnerability of Chinese aid to political capture has prompted speculation that it may be economically … ineffective, or even harmful. We test these claims by estimating the effect of Chinese aid on subnational economic development …

We use an excludable instrument to test the effect of foreign aid on economic growth in a sample of 96 recipient … receiving aid. The results show that fractionalization increases donors' aid budgets, representing the over-time variation of … our instrument, while the probability of receiving aid introduces variation across recipient countries. Controlling for …

We examine how donor government ideology influences the composition of foreign aid flows. We use data for 23 OECD … countries over the period 1960]2009 and distinguish between multilateral and bilateral aid, grants and loans, recipient … characteristics such as income and political institutions, tied and untied aid, and aid by sector. The results show that leftist …

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, specialization, and common donor motivations drive bilateral aid allocation as …

This paper studies the effects of bilateral foreign aid on conflict escalation and de-escalation. We make three major … aid on conflict by predicting bilateral aid flows based on electoral outcomes of donor countries that are exogenous to … recipients. We establish that the effect of foreign aid on the various transition probabilities is heterogeneous and can be …

countries. We also find that these territorial reforms are associated with increases in certain forms of bilateral foreign aid … aid may function as substitutes. …

We present a new mechanism to explain politically induced changes in bilateral aid. We argue that shifts in the foreign … aid. Utilizing data from the G7 and 133 developing countries between 1975 and 2012, we show that incoming leaders in … recipient countries that politically converge towards their donors receive more aid commitments, compared to those that diverge …

GDP of Kenya. Interestingly, breaking from the traditional model of bilateral aid, donor countries distributed nearly … fifty percent of their aid through multilateral aid funds (OECD, 2015). In this paper, we show that by delegating aid … allocate aid based on, say, a regional preference. That is, under bilateral aid, donor-country bias decreases the incentive of …

Performance-based aid has been proposed as an alternative to the failed traditional approach whereby donors make aid … the MCC, while increasing uncertainty about the timing and amount of MCC aid appear to weaken the incentive to fight … corruption over time. -- foreign aid ; corruption ; Millennium Challenge Corporation ; MCC effect …