Does foreign aid harm political institutions?
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Does foreign aid harm political institutions? / Jones, Edward Samuel; Tarp, Finn.
Helsinki : UNU-WIDER, 2015.Research output: Working paper › Research
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TY - UNPB
T1 - Does foreign aid harm political institutions?
AU - Jones, Edward Samuel
AU - Tarp, Finn
N1 - JEL classification: F35, O17, O19
PY - 2015
Y1 - 2015
N2 - The notion that foreign aid harms the institutions of recipient governments remains prevalent. We combine new disaggregated aid data and various metrics of political institutions to re-examine this relationship. Long-run cross-section and alternative dynamic panel estimators show a small positive net effect of total aid on political institutions. Distinguishing between types of aid according to their frequency domain and stated objectives, we find this aggregate net effect is driven primarily by the positive contribution of more stable inflows of ‘governance aid’. We conclude the data do not support the view that aid has had a systematic negative effect on political institutions.
AB - The notion that foreign aid harms the institutions of recipient governments remains prevalent. We combine new disaggregated aid data and various metrics of political institutions to re-examine this relationship. Long-run cross-section and alternative dynamic panel estimators show a small positive net effect of total aid on political institutions. Distinguishing between types of aid according to their frequency domain and stated objectives, we find this aggregate net effect is driven primarily by the positive contribution of more stable inflows of ‘governance aid’. We conclude the data do not support the view that aid has had a systematic negative effect on political institutions.
M3 - Working paper
SN - 978-92-9230-942-8
T3 - UNU WIDER Working Paper Series
BT - Does foreign aid harm political institutions?
PB - UNU-WIDER
CY - Helsinki
ER -
ID: 146247160