Donor Ideology and Types of Foreign Aid

Viktor Brech and Niklas Potrafke

No 4314, CESifo Working Paper Series from CESifo

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.

Keywords: foreign aid; government ideology; partisan politics; international organizations; panel data (search for similar items in EconPapers)
JEL-codes: C23 D72 F35 F36 F53 F59 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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Related works:
Journal Article: Donor ideology and types of foreign aid (2014)
Working Paper: Donor ideology and types of foreign aid (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4314

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