eprintid: 17098
rev_number: 27
eprint_status: archive
userid: 2744
dir: disk0/00/01/70/98
datestamp: 2014-07-17 10:21:31
lastmod: 2016-01-01 05:04:03
status_changed: 2014-07-17 10:21:31
type: workingPaper
metadata_visibility: show
creators_name: Hernandez , Diego 
creators_name:  Vadlamannati , Krishna Chaitanya
title: Politics of Religiously Motivated Lending: An Empirical Analysis of Aid Allocation by the Islamic Development Bank
subjects: ddc-330
divisions: i-181000
keywords:  Development aid, Arab aid, Islamic Development Bank, Sunni-Shia politics. 
abstract: We investigate whether lending by the Islamic Development Bank mirrors Saudi Arabia’s political interests based on religious affinity using panel data for its 56 member countries over the 1970 to 2007 period. Our results indicate that Sunni regime countries receive favorable treatment in terms of loan allocation, as well as Shia majority populated countries in exceptional occasions of conflict with other religious minority groups, while non-Muslim countries are the least favored. There is also evidence that lending by the World Bank to the same group of countries and over the  same time frame does not respond to the political stance of Saudi Arabia founded on religion. These findings reveal the advantage that Saudi Arabia gains by assuming the leadership of a Regional Development Bank in contrast to coordinating common strategies in a global International Financial Institution with other large shareholders for whom religion might not be essential for political alliances. 
date: 2014-07
id_scheme: DOI
id_number: 10.11588/heidok.00017098
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0570
ppn_swb: 1658693817
own_urn: urn:nbn:de:bsz:16-heidok-170983
language: eng
bibsort: HERNANDEZDPOLITICSOF201407
full_text_status: public
series: Discussion Paper Series, University of Heidelberg, Department of Economics
volume: 0570
place_of_pub: Heidelberg
pages: 48
citation:   Hernandez , Diego  ;  Vadlamannati , Krishna Chaitanya  (2014) Politics of Religiously Motivated Lending: An Empirical Analysis of Aid Allocation by the Islamic Development Bank.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/17098/1/Herandez_Vadlamannati_2014_dp570.pdf