EconPapers    
Economics at your fingertips  
 

Aid, Political Business Cycles and Growth in Africa

Blessing Chiripanhura () and Miguel Niño‐Zarazúa
Authors registered in the RePEc Author Service: Miguel Angel Niño-Zarazúa ()

Journal of International Development, 2015, vol. 27, issue 8, 1387-1421

Abstract: This study develops a model of opportunistic behaviour in which an incumbent government resorts to expansionary fiscal and/or monetary stimuli to foster economic growth and thus, maximize the probability of re‐election. Using a panel dataset of 31 African countries covering the period 1980 to 2009, we test whether donor aid facilitates such political business cycles and investigate their effect on growth. We find evidence that donors, through guaranteeing support to incumbent governments, may unwittingly instigate political business cycles. With forbearance, and sometimes complicity by donors, aid seems to allow incumbent governments to instigate macroeconomic stimuli that ensure electoral victory with no fear of losing aid support. © 2015 UNU‐WIDER. Journal of International Development published by John Wiley & Sons, Ltd.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1002/jid.3188

Related works:
Working Paper: Aid, Political Business Cycles and Growth in Africa (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:27:y:2015:i:8:p:1387-1421

Access Statistics for this article

Journal of International Development is currently edited by Paul Mosley and Hazel Johnson

More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-08-27
Handle: RePEc:wly:jintdv:v:27:y:2015:i:8:p:1387-1421