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Who gives aid to whom and when?: aid accelerations, shocks and policies

Brück, Tilman and Xu, Guo (2012) Who gives aid to whom and when?: aid accelerations, shocks and policies. European Journal of Political Economy, 28 (4). pp. 593-606. ISSN 0176-2680

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Abstract

We address the pitfalls of averaging by exploiting the longitudinal variation in aid to identify sudden and sharp increases in aid flows. Focusing on specific events, we test if aid accelerations correspond to policies and shocks in the recipient country. We find that positive regime changes and wars are significant predictors of aid accelerations. The results also suggest the presence of aid spill-overs, where neighbors of war-torn countries are almost as likely to experience large aid inflows. Disaggregating aid flows by donors, we find some indicative evidence for competing allocation rules among European donors. We argue that drivers of aid accelerations differ from drivers of average aid flows-a distinction that can help reconcile some of the ambiguous empirical results in the aid literature.

Item Type: Article
Official URL: http://www.journals.elsevier.com/european-journal-...
Additional Information: © 2012 Elsevier B.V.
Library of Congress subject classification: H Social Sciences > HN Social history and conditions. Social problems. Social reform
J Political Science > JZ International relations
Journal of Economic Literature Classification System: F - International Economics > F3 - International Finance > F35 - Foreign Aid
F - International Economics > F5 - International Relations and International Political Economy > F50 - General
O - Economic Development, Technological Change, and Growth > O1 - Economic Development
Sets: Departments > Social Policy
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 10 Aug 2012 10:28
URL: http://eprints.lse.ac.uk/45221/

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