Democratic Aid and the Democratization of Recipients

31 Pages Posted: 29 Mar 2010

See all articles by Sarantis C. Kalyvitis

Sarantis C. Kalyvitis

Athens University of Economics and Business - Department of International and European Economic Studies

Irene Vlachaki

Athens University of Economics and Business - Department of International and European Economic Studies

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Abstract

We investigate whether democratic aid flows, which are directed toward the democratization of recipients by covering democracy-related programs and government and civil society activities, affect the future political regime of recipient countries. We introduce a multinomial multivariate logit model and we use 5-yr averaged data covering the period 1972–2004 for 59 democracy aid-recipient countries categorized into three broad classes according to the prevalent political regime. We find strong evidence that democratic aid flows are positively associated with the likelihood of observing a partly democratic or a fully democratic political regime in democratic aid-recipient countries and that this result is robust to the potential endogeneity of democratic assistance.

JEL Classification: D70, F35, C25

Suggested Citation

Kalyvitis, Sarantis C. and Vlachaki, Irene, Democratic Aid and the Democratization of Recipients. Contemporary Economic Policy, Vol. 28, No. 2, pp. 188-218, April 2010, Available at SSRN: https://ssrn.com/abstract=1578481 or http://dx.doi.org/10.1111/j.1465-7287.2009.00154.x

Sarantis C. Kalyvitis (Contact Author)

Athens University of Economics and Business - Department of International and European Economic Studies ( email )

Patission Str 76
GR-10434 Athens
Greece

Irene Vlachaki

Athens University of Economics and Business - Department of International and European Economic Studies ( email )

76 Patission Street
Athens, 104 34
Greece

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