Donor Ideology and Types of Foreign Aid

38 Pages Posted: 10 Jul 2013

See all articles by Viktor Brech

Viktor Brech

George Mason University

Niklas Potrafke

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Date Written: June 30, 2013

Abstract

We examine how donor government ideology influences the composition of foreign aid flows. We use data for 23 OECD countries over the period 1960‐2009 and distinguish between multilateral and bilateral aid, grants and loans, recipient characteristics such as income and political institutions, tied and untied aid, and aid by sector. The results show that leftist governments increased the growth of bilateral grant aid, and more specifically grant aid to least developed and lower middle‐income countries. Our findings confirm partisan politics hypotheses because grants are closely analogous to domestic social welfare transfer payments, and poverty and inequality are of greatest concern for less developed recipient countries.

Keywords: foreign aid, government ideology, partisan politics, international organizations, panel data

JEL Classification: F350, F360, F530, F590, D720, C230

Suggested Citation

Brech, Viktor and Potrafke, Niklas, Donor Ideology and Types of Foreign Aid (June 30, 2013). CESifo Working Paper Series No. 4314, Available at SSRN: https://ssrn.com/abstract=2291881

Viktor Brech

George Mason University ( email )

ICES
4400 University Drive
Fairfax, VA 22030
United States

Niklas Potrafke (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
95
Abstract Views
528
rank
298,797
PlumX Metrics