Does Aid Effectiveness Differ per Political Ideologies?

International Economic Journal, Volume 33, 2019 - Issue 2

Posted: 23 May 2019

See all articles by Vincent Tawiah

Vincent Tawiah

Griffith University; University of Mysore - Department of Commerce; University of Cape Coast; Dublin City University Business School

Barnes Evans

University of Mysore - Department of Studies in Economics and Cooperation

Abdulrasheed Zakari

affiliation not provided to SSRN

Date Written: April 26, 2019

Abstract

Despite the extensive empirical literature on aid effectiveness, existing studies have not addressed directly how political ideology affects the use of foreign aid in the recipient country. This study, therefore, uses a unique dataset of 12 democratic countries in Africa to investigate the impact of political ideologies on aid effectiveness. Our results indicate that each political party uses aid differently in peruse of their political, ideological orientation. Further analyses suggest that rightist capitalist parties are likely to use aid to improve the private sector environment. Leftist socialist on the other hand, use aid effectively on pro-poor projects such as short-term poverty reduction, mass education and health services. Our additional analysis on the lines of colonialisation shows that the difference in the use of aid by political parties is much stronger in French colonies than Britain colonies. The study provides insight on how the recipient government are likely to use foreign aid.

Keywords: Africa; democracy; foreign aid; political ideology

Suggested Citation

Tawiah, Vincent and Evans, Barnes and Zakari, Abdulrasheed, Does Aid Effectiveness Differ per Political Ideologies? (April 26, 2019). International Economic Journal, Volume 33, 2019 - Issue 2. Available at SSRN: https://ssrn.com/abstract=3378349

Vincent Tawiah (Contact Author)

Griffith University ( email )

PMB 50
Gold Coast Queensland 9726
Australia

University of Mysore - Department of Commerce ( email )

Mysore
India

University of Cape Coast ( email )

PMB, UCC, GHANA
Department of English
Cape Coast, Central Region
Ghana

HOME PAGE: http://ucc.edu.gh

Dublin City University Business School ( email )

Dublin 9
Ireland

Barnes Evans

University of Mysore - Department of Studies in Economics and Cooperation ( email )

Manasagangothri
Mysore
India

Abdulrasheed Zakari

affiliation not provided to SSRN

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