Government ideology in donor and recipient countries: Does ideological proximity matter for the effectiveness of aid?

Dreher, Axel; Minasyan, Anna; Nunnenkamp, Peter

doi:10.1016/j.euroecorev.2015.07.004

Cited by 49 publications

(47 citation statements)

References 58 publications

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“…This is in line with the original finding of Rajan and Subramanian (), according to whom aid per se is not effective in stimulating growth in the recipient countries. The results on the control variables taken from Rajan and Subramanian () are similar to those in Dreher et al (), who also employ the approach of Clemens et al () by taking first differences and lagging aid. While several variables are insignificant at conventional levels, the coefficients on Initial GDP p.c.…”

Section: Resultssupporting

confidence: 75%

“…For instance, donors may grant more aid to a newly elected government that initiates growth promoting reforms. Higher growth induced by local reforms could then be spuriously attributed to foreign aid (see also Dreher et al, 2015). Generally speaking, Granger causality would not necessarily reflect causal effects of aid on growth in the strict sense.…”

Section: Methods and Datamentioning

confidence: 99%

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Remittances and the Effectiveness of Foreign Aid

Minasyan

Nunnenkamp

2016

Review Development Economics

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We argue that donors could improve the effectiveness of foreign aid by pursuing complementary and coherent non‐aid policies. In particular, we hypothesize that aid has stronger growth effects if recipients receive more aid from donors who allow for (temporary) worker mobility and (more permanent) migration. We focus on overall remittances paid by the donor countries to proxy for worker mobility and migration. Our empirical results support the hypothesis that higher remittances paid by donor countries strengthen the growth effects of foreign aid.

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Section: Resultssupporting

confidence: 75%

Section: Methods and Datamentioning

confidence: 99%

Remittances and the Effectiveness of Foreign Aid

Minasyan

Nunnenkamp

2016

Review Development Economics

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“…According to Dreher et al (2015), political misalignment and greater ideological distance between donor and recipient governments reduces the growth effects of aid by adding to transaction costs and eroding trust.…”

Section: Introductionmentioning

confidence: 99%

Does Aid Effectiveness Depend on the Quality of Donors?

2017

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“…Economic growth data is from Penn World Tables. The data on weighted genetic distance is from Spolaore and Wacziarg (2009) and the data on leaders' foreign education and education level is from Dreher et al (2013b). As in Dreher et al (2014Dreher et al ( , 2013a, this paper closely follows the approach in Clemens et al (2012) and studies the interaction effect of genetic distance and bilateral aid on economic growth, using the extended aid-growth model from Rajan and Subramanian (2008).…”

Section: Methodsmentioning

confidence: 99%

“…To capture this influence, I follow the method used in Dreher et al (2013b) and compute an aid-adjusted measure of the above-described weighted genetic distance: (2) where is donor share of total bilateral aid in country , in period . is the weighted genetic distance between recipient and donor .…”

Section: Aid-adjusted (Weighted) Genetic Distancementioning

confidence: 99%

Your development or mine? Effects of donor–recipient cultural differences on the aid-growth nexus

Minasyan

2016

Journal of Comparative Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Your development or mine? Effects of donor-recipient cultural differences on the aid-growth nexusAnna Minasyan* Department of Economics, University of Goettingen, Germany Abstract Development aid from the West may lead to adverse growth effects in the global South due to the neglected cultural context in the development framework. There is evidence that development agendas are mainly premised upon western thought and belief systems. Therefore, I hypothesize that the expected effect of development aid on the economic growth of recipients is impaired by cultural differences between western donors and aid recipients. I test this hypothesis empirically by augmenting an aid-growth model with proxy variables of cultural distance between donors and recipients. Namely, based on the theory of cultural transmission, I use donor-recipient weighted genetic distance, to capture vertical transmission of culture. Then, I use western education of the chief executive of the recipient country to capture horizontal transmission of culture. Results of OLS panel estimation in first differences for 1961-2010 period show that a one unit increase in donor-recipient genetic distance reduces the effect of aid on growth by 0.2 percentage points, if aid is increased by one percentage point. In turn, a one percentage point increase in aid yields, on average, 0.3 percentage point increase in growth after a decade, if the leader in power has western education.JEL classification: O111; O170; O190

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Government ideology in donor and recipient countries: Does ideological proximity matter for the effectiveness of aid?

Cited by 49 publications

References 58 publications

Remittances and the Effectiveness of Foreign Aid

Remittances and the Effectiveness of Foreign Aid

Does Aid Effectiveness Depend on the Quality of Donors?

Your development or mine? Effects of donor–recipient cultural differences on the aid-growth nexus

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