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

Axel Dreher, Anna Minasyan, Peter Nunnenkamp

Research output: Contribution to journalArticleAcademicpeer-review

31 Citations (Scopus)

Abstract

Political misalignment and greater ideological distance between donor and recipient governments may render foreign aid less effective by adding to transaction costs and eroding trust. We test this hypothesis empirically by considering the political ideology of both governments along the left–right spectrum in augmented models on the economic growth effects of aid. Following the estimation approach of Clemens et al. (2012), we find that aid tends to be less effective when political ideology differs between the donor and the recipient.
Original languageEnglish
Pages (from-to)80-92
Number of pages13
JournalEuropean Economic Review
Volume79
DOIs
Publication statusPublished - 31-Oct-2015
Externally publishedYes

Keywords

  • Government ideology
  • Politics and aid
  • Economic growth
  • Aid effectiveness

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