Are Democratizing Countries ‘Rewarded’ with Higher Levels of Foreign Aid?

Szent-Iványi, Balázs (2014) Are Democratizing Countries ‘Rewarded’ with Higher Levels of Foreign Aid? Working Paper. Corvinus University of Budapest Faculty of Economics, Budapest.

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The paper examines how flows of foreign aid have reacted to events of democratization in developing countries. Using a panel dataset of 136 aid receiving countries between 1980 and 2009, aid allocation regressions reveal that donors in general have tended to react to visible, major democratic transitions by increasing aid to the partner country, but no significant increases can be identified in case of countries introducing smaller democratic reforms. The increases in aid flows are not sustained over time, implying that donors do not provide long term support to nascent democracies. Also, democratizations in Sub-Saharan Africa do not seem to have been rewarded with higher levels of aid.

Item Type:Monograph (Working Paper)
Series Name:Corvinus Economics Working Papers - CEWP
Series Number / Identification Number:2014/04
Uncontrolled Keywords:foreign aid, aid allocation, democratization
JEL classification:F35 - Foreign Aid
F59 - International Relations and International Political Economy: Other
Divisions:Faculty of Economics > Department of World Economy
Subjects:International relations
Projects:TÁMOP 4.2.4. A/2-11-1- 2012-0001 “National Excellence Program – Elaborating and operating an inland student and researcher personal support system” project
ID Code:1569
Deposited By: Ádám Hoffmann
Deposited On:20 May 2014 14:05
Last Modified:25 Jul 2014 19:53

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