EconPapers    
Economics at your fingertips  
 

The Effects of Foreign Aid on Refugee Flows

Axel Dreher (), Andreas Fuchs () and Sarah Langlotz

No 6885, CESifo Working Paper Series from CESifo Group Munich

Abstract: This article analyzes whether foreign aid affects the net flows of refugees from recipient countries. Combining refugee data on 141 origin countries over the 1976-2013 period with bilateral Official Development Assistance data, we estimate the causal effects of a country’s aid receipts on both total refugee flows to the world and flows to donor countries. The interaction of donor-government fractionalization and a recipient country’s probability of receiving aid provides a powerful and excludable instrumental variable, when we control for country- and time-fixed effects that capture the levels of the interacted variables. Although our results suggest that aid induces recipient governments to encourage the return of their citizens, we find no evidence that aid reduces worldwide refugee outflows or flows to donor countries in the short term. However, we observe long-run effects after four three-year periods, which appear to be driven by lagged positive effects of aid on growth.

Keywords: foreign aid; Official Development Assistance; migration; refugees; displaced people; humanitarian crises; repatriation policies (search for similar items in EconPapers)
JEL-codes: F22 F35 F59 H84 O15 O19 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-mig
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.cesifo-group.de/DocDL/cesifo1_wp6885.pdf (application/pdf)

Related works:
Working Paper: The Effects of Foreign Aid on Refugee Flows (2018) Downloads
Working Paper: The Effects of Foreign Aid on Refugee Flows (2018) 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:ces:ceswps:_6885

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Group Munich Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2018-11-11
Handle: RePEc:ces:ceswps:_6885