The Politics of Effective Foreign Aid

Posted: 14 Oct 2010

See all articles by Joseph Wright

Joseph Wright

Pennsylvania State University - Department of Political Science and Women's Studies

Matthew S. Winters

University of Illinois at Urbana-Champaign - Department of Political Science; Institute for Corruption Studies

Date Written: June 2010

Abstract

There is little consensus on whether foreign aid can reliably increase economic growth in recipient countries. We review the literature on aid allocation and provide new evidence suggesting that since 1990 aid donors reward political contestation but not political inclusiveness. Then we examine some challenges in analyzing cross-national data on the aid/growth relationship. Finally, we discuss the causal mechanisms through which foreign aid might affect growth and argue that politics can be viewed as both (a) an exogenous constraint that conditions the causal process linking aid to growth and (b) an endogenous factor that is affected by foreign aid and in turn impacts economic growth.

Suggested Citation

Wright, Joseph and Winters, Matthew S., The Politics of Effective Foreign Aid (June 2010). Annual Review of Political Science, Vol. 13, pp. 61-80, 2010, Available at SSRN: https://ssrn.com/abstract=1691293 or http://dx.doi.org/10.1146/annurev.polisci.032708.143524

Joseph Wright

Pennsylvania State University - Department of Political Science and Women's Studies ( email )

Pond Lab, Pennsylvania State University
University Park, PA PA 16802-2800
United States
2022888749 (Phone)

Matthew S. Winters

University of Illinois at Urbana-Champaign - Department of Political Science ( email )

702 S. Wright Street
Urbana, IL 61801
United States

HOME PAGE: http://https://sites.google.com/site/mswinters1/home

Institute for Corruption Studies

Stevenson Hall 425
Normal, IL 61790-4200
United States

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