ANDREAS FUCHS
PROFESSOR OF DEVELOPMENT ECONOMICS
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Democracy and Aid Donorship
Angelika J. Budjan and Andreas Fuchs

Published in American Economic Journal: Economic Policy 13 (4): 217-38




Abstract
Almost half of the world’s states provide bilateral development assistance. While previous research takes the set of donor countries as exogenous, this article introduces a new dataset on aid giving covering all countries in the world, both rich and poor, and explores the determinants of aid donorship. It argues and shows empirically that democratic institutions support the setup of an aid program in richer countries but undermine its establishment in poorer countries. The findings hold in instrumental-variable regressions and the pattern is similar for the amount of aid.

Published paper
  • Download via AEA

Supplementary material
  • Online Appendix

Database
  • New Donor Database

Replication data
  • Open ICPSR

Working paper (December 2018)
  • Download via AidData

Working paper (September 2018)
  • Download via IDEAS
  • Download via IfW
  • Download via SSRN

Presentations at conferences and workshops
  • International Conference on the Political Economy of Democracy and Dictatorship, University of Münster, Germany (03/2019)
  • Annual Conference of the International Political Economy Society, MIT, Cambridge, MA, USA (11/2018)
  • PEGNet Conference 2018, African School of Economics in Cotonou, Benin (10/2018)
  • Annual Conference of the Verein für Socialpolitik Research Committee Economic Systems and Institutional Economics, Helmut Schmidt University Hamburg, Germany (09/2018)
  • FHM Workshop in Development Economics, University of Mannheim, Germany (04/2018)
  • Workshop “Tracking International Aid and Investment from Developing and Emerging Economies”, Heidelberg University, Germany (09/2017)
  • DIAL Development Conference, Université Paris-Dauphine, Paris, France (06/2017)
  • Beyond Basic Questions Workshop, Gargnano, Italy (06/2017)
  • Annual International Conference of the VfS Research Group on Development Economics, University of Goettingen, Germany (06/2017)
  • ZEW Public Finance Conference, Mannheim, Germany (05/2017)
  • Annual Meeting of the European Public Choice Society, Central European University, Budapest, Hungary (04/2017)

See also
  • Punditokraterne
  • The First Tranche

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