Does Foreign Aid Harm Political Institutions?
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Does Foreign Aid Harm Political Institutions? / Jones, Edward Samuel; Tarp, Finn.
In: Journal of Development Economics, Vol. 118, 2016, p. 266- 281.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Does Foreign Aid Harm Political Institutions?
AU - Jones, Edward Samuel
AU - Tarp, Finn
PY - 2016
Y1 - 2016
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 that this aggregate net effect is driven primarily by the positive contribution of more stable inflows of ‘governance aid’. We conclude that 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 that this aggregate net effect is driven primarily by the positive contribution of more stable inflows of ‘governance aid’. We conclude that the data do not support the view that aid has had a systematic negative effect on political institutions.
U2 - 10.1016/j.jdeveco.2015.09.004
DO - 10.1016/j.jdeveco.2015.09.004
M3 - Journal article
VL - 118
SP - 266
EP - 281
JO - Journal of Development Economics
JF - Journal of Development Economics
SN - 0304-3878
ER -
ID: 146209531