Lobbying by Ethnic Groups and Aid Allocation

Sajal Lahiri and Pascalis Raimondos ()

No 99-05, EPRU Working Paper Series from Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics

Abstract: We develop a political-economic model of foreign aid allocation. Each ethnic group in the donor country lobbies the government for allocating more aid to its country of origin, and the government accepts contributions from lobby groups. Initial per-capita income of the recipients and those of the ethnic groups are shown to be important determinants of the solution of the political equilibrium. We also examine the effects of changes in the degree of corruption, aid fatigue, and ethnic composition, in the donor country on the allocation of aid.

Date: 1999-01, Revised 2003-10
New Economics Papers: this item is included in nep-mic and nep-pol
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Lobbying by Ethnic Groups and Aid Allocation (2000)
Working Paper: Lobbying by ethnic groups and aid allocation (1999)
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