Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/54101 
Year of Publication: 
2011
Series/Report no.: 
WIDER Working Paper No. 2011/64
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
This study revisits the effect of aid on the quality of institutions and examines the effects of a major source of instability, namely terms-of-trade instability, on the quality of democracy. We take advantage of previous empirical findings which explain the role of aid in mitigating the adverse effects of external shocks, and argue that in the long term, aggregate aid flows can potentially dampen the effects of terms-of-trade instability on the quality of democracy. An empirical investigation with data from 71 developing countries (including 28 African states) over the period 1980-2003 provides supportive results.
Subjects: 
democracy
foreign aid
terms-of-trade instability
JEL: 
F35
F4
O11
O43
ISBN: 
978-92-9230-431-7
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.