The (small) blessing of foreign aid: further evidence on aid's impact on democracy

Yener Altunbas and John Thornton

Applied Economics, 2014, vol. 46, issue 32, 3922-3930

Abstract: In an empirical contribution to the literature of foreign aid, we estimate the impact of foreign aid on democracy in a panel of 93 developing economies during 1971-2010. We find that foreign aid promotes democracy, with the result robust to different estimation methodologies and control variables and to instrumenting for foreign aid.

Date: 2014
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DOI: 10.1080/00036846.2014.946186

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