Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77700
Authors: 
Brech, Viktor
Potrafke, Niklas
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4314
Abstract: 
We examine how donor government ideology influences the composition of foreign aid flows. We use data for 23 OECD countries over the period 1960-2009 and distinguish between multilateral and bilateral aid, grants and loans, recipient characteristics such as income and political institutions, tied and untied aid, and aid by sector. The results show that leftist governments increased the growth of bilateral grant aid, and more specifically grant aid to least developed and lower middle]income countries. Our findings confirm partisan politics hypotheses because grants are closely analogous to domestic social welfare transfer payments, and poverty and inequality are of greatest concern for less developed recipient countries.
Subjects: 
foreign aid
government ideology
partisan politics
international organizations
panel data
JEL: 
F35
F36
F53
F59
D72
C23
Document Type: 
Working Paper

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