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Title:Forced to Freedom? Empirical relations between aid and economic freedom PDF Logo
Authors:Kronthaler, Franz
Knedlik, Tobias
Issue Date:2007
Series/Report no.:Proceedings of the German Development Economics Conference, Göttingen 2007 / Verein für Socialpolitik, Research Committee Development Economics 19
Abstract:The paper explores the relationships between economic freedom on the one side and development aid and IMF credit as approximation for conditional aid on the other side. After a short review of current literature the paper develops a simple panel regression model to evaluate the relationships. In contrast to previous research, our results allow the rejection of the hypothesis that IMF credit increases economic freedom and that development aid is not contributing to economic freedom. It could not be shown that countries can be forced to economic freedom by aid conditions. The paper discusses explanations of the empirical findings.
Subjects:Aid receiving countries
economic freedom
development aid
IMF credit
JEL:P10
F35
O19
Document Type:Conference Paper
Appears in Collections:Proceedings of the German Development Economics Conference, 2007 (Göttingen)

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