Aid Is Not Oil: Donor Utility, Heterogeneous Aid, and the Aid-Democratization Relationship

Is Aid Oil?

Aid and Democratization in the Transition Economies

There is a growing consensus that aid has not improved economic growth and market institutions among developing nations (Boone 1996, Knack 2001, Collier and Hoeffler 2004, Heckelman and Knack 2008, Rajan and Subramanian 2008). Far less attention has been paid so far to the ability of aid to promote and support democratization. The effect of foreign aid on democratization is theoretically ambigu...

Uncertainty of Aid Inflows and the Aid - Growth Relationship

This paper contributes to the literature on aid and economic growth. We posit that it is not the level of aid flows per se but the stability of such flows that determines the impact of aid on economic growth. Three measures of aid instability are employed. One is a simple deviation from trend, and measures overall instability. The other measures are based on auto-regressive estimates to capture...

Is Aid Volatility Harmful?

This paper studies the causal e¤ect of aid volatility on the economic performance of developing countries in 2000-2009 period. We construct a time-varying measure of aid volatility using autoregressive conditional heteroskedasticity (ARCH). We control for the endogeneity of aid ‡ows by using as instruments for aid volatility three characteristics of donor counitres: (i) their budget de…cits ; (...

Disasters, Donors, and Democracy: Matching Donor Types and Aid Channels in Post-Disaster Humanitarian Aid Giving

Research into the determinants of foreign aid giving suggests different predictions for the effect of recipient country democratic institutions on the probability and amount of aid given by donor countries. While some suggest that better governance in recipient countries may increase the amount of aid provided by donors, others adhere to the notion that less democratic recipient governments may...