Aid Effectiveness: The Role of the Local Elite

Luis Angeles () and Kyriakos Neanidis

Working Papers from Business School - Economics, University of Glasgow

Abstract: We study the importance of the local elite as a determinant of the effectiveness of foreign aid in developing countries. An "extractive" elite will misuse aid flows, an issue that is probably as old as foreign aid itself. We proxy for the existence of an "extractive" elite by using an historically determined variable: the percentage of European settlers in colonial times. Our econometric results clearly show the importance of this factor and its robustness to a wide set of alternative aid-growth relationships advanced in the literature.

Keywords: Foreign aid; Elite; Economic growth (search for similar items in EconPapers)
JEL-codes: C23 F35 F43 O11 (search for similar items in EconPapers)
Date: 2006-10, Revised 2006-12
New Economics Papers: this item is included in nep-afr
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Aid effectiveness: the role of the local elite (2009)
Working Paper: Aid Effectiveness: The Role of the Local Elite (2006)
Working Paper: Aid Effectiveness: The Role of the Local Elite (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2007_01

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