Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/204736
Year of Publication: 
2013
Series/Report no.: 
SITE Working Paper No. 25
Publisher: 
Stockholm School of Economics, Stockholm Institute of Transition Economics (SITE), Stockholm
Abstract: 
We argue that the tilt towards donor interests over recipient needs in aid allocation and practices may be particularly strong in new partnerships. Using the natural experiment of Eastern transition we find that commercial and strategic concerns influenced both aid flows and entry in the first half of the 1990s, but much less so later on. We also find that fractionalization increased and that early aid to the region was particularly volatile, unpredictable and tied. Our results may explain why aid to Iraq and Afghanistan has had little development impact and serve as warning for Burma and Arab Spring regimes.
Subjects: 
foreign aid
development
JEL: 
F35
F63
Document Type: 
Working Paper

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