Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126327
Authors: 
Jones, Sam
Tarp, Finn
Year of Publication: 
2015
Series/Report no.: 
WIDER Working Paper 2015/094
Abstract: 
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.
Subjects: 
foreign aid
governance
institutions
government quality
JEL: 
F35
O17
O19
ISBN: 
978-92-9230-983-1
Document Type: 
Working Paper

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