eprintid: 17545
rev_number: 16
eprint_status: archive
userid: 2744
dir: disk0/00/01/75/45
datestamp: 2014-10-21 09:58:00
lastmod: 2015-04-23 04:32:41
status_changed: 2014-10-21 09:58:00
type: workingPaper
metadata_visibility: show
creators_name: Dreher, Axel 
creators_name: Eichenauer, Vera 
creators_name: Gehring, Kai 
title: Geopolitics, Aid and Growth
subjects: 330
divisions: 181000
keywords: aid effectiveness, economic growth, politics and aid, United Nations Security Council membership, political instruments 
abstract: We investigate the effects of short-term political motivations on the effectiveness of foreign aid. Specifically, we test whether the effect of aid on economic growth is reduced by the share of years a country has served on the United Nations Security Council (UNSC) in the period the aid has been committed, which provides quasi-random variation in aid. Our results show that the relationship of aid with growth is significantly lower when aid has been committed during a country’s tenure on the UNSC. We derive two conclusions from this. First, short-term political favoritism reduces growth. Second, political interest variables are inadequate as instruments for overall aid, raising doubts about a large number of results in the aid effectiveness literature. 
date: 2014-10
id_scheme: DOI
id_number: 10.11588/heidok.00017545
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0575
ppn_swb: 1659408679
own_urn: urn:nbn:de:bsz:16-heidok-175459
language: eng
bibsort: DREHERAXELGEOPOLITIC201410
full_text_status: public
series: Discussion Paper Series, University of Heidelberg, Department of Economics
volume: 0575
place_of_pub: Heidelberg
pages: 47
citation:   Dreher, Axel  ; Eichenauer, Vera  ; Gehring, Kai   (2014) Geopolitics, Aid and Growth.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/17545/1/Dreher_Eichenauer_Gehring_2014_dp575-1.pdf