Are Democratizing Countries ‘Rewarded’ with Higher Levels of Foreign Aid?

Balazs Szent-Ivanyi ()

Corvinus Economics Working Papers (CEWP) from Corvinus University of Budapest

Abstract: The paper examines how flows of foreign aid have reacted to events of democratization in developing countries. Using a panel dataset of 136 aid receiving countries between 1980 and 2009, aid allocation regressions reveal that donors in general have tended to react to visible, major democratic transitions by increasing aid to the partner country, but no significant increases can be identified in case of countries introducing smaller democratic reforms. The increases in aid flows are not sustained over time, implying that donors do not provide long term support to nascent democracies. Also, democratizations in Sub-Saharan Africa do not seem to have been rewarded with higher levels of aid.

Keywords: foreign aid; aid allocation; democratization (search for similar items in EconPapers)
JEL-codes: F35 F59 (search for similar items in EconPapers)
Date: 2014-05
New Economics Papers: this item is included in nep-dev
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https://unipub.lib.uni-corvinus.hu/1569/ original version (application/pdf)

Related works:
Journal Article: Are Democratising Countries Rewarded with Higher Levels of Foreign Aid? (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cvh:coecwp:2014/04

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