Does Foreign Aid Promote Democracy?

Thierry Kangoye

No wp-2011-064, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This study revisits the effect of aid on the quality of institutions and examines the effects of a major source of instability, namely terms-of-trade instability, on the quality of democracy. We take advantage of previous empirical findings which explain the role of aid in mitigating the adverse effects of external shocks, and argue that in the long term, aggregate aid flows can potentially dampen the effects of terms-of-trade instability on the quality of democracy.

Keywords: Democracy; Economic assistance and foreign aid; International trade (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (5)

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