Does foreign aid promote democracy? Aid, democracy, and instability from trade

Arbeitspapier

This study revisits the effect of aid on the quality of institutions and examines the effects of a major source of instability, namely terms-of-trade instability, on the quality of democracy. We take advantage of previous empirical findings which explain the role of aid in mitigating the adverse effects of external shocks, and argue that in the long term, aggregate aid flows can potentially dampen the effects of terms-of-trade instability on the quality of democracy. An empirical investigation with data from 71 developing countries (including 28 African states) over the period 1980-2003 provides supportive results.

Object Details

• ISBN: 978-92-9230-431-7
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Working Paper ; No. 2011/64

Classification and Topics

• Classification: Wirtschaft ; Foreign Aid ; Macroeconomic Analyses of Economic Development ; Institutions and Growth
• Subject: democracy ; foreign aid ; terms-of-trade instability ; Entwicklungshilfe ; Terms of Trade ; Demokratie ; Entwicklungsländer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kangoye, Thierry
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/54101
• Last update: 10.03.2025, 11:42 AM CET