Geopolitics, Aid, and Growth : The Impact of UN Security Council Membership on the Effectiveness of Aid

The paper investigates the effects of short-term political motivations on the effectiveness of foreign aid. Specifically, the paper tests whether the effect of aid on economic growth is reduced by the share of years a country served on the United N...

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Main Authors:	Dreher, Axel, Eichenauer, Vera Z., Gehring, Kai
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	aid effectiveness politics and aid united nations geopolitics
Online Access:	http://documents.worldbank.org/curated/en/2016/07/26601455/geopolitics-aid-growth-impact-un-security-council-membership-effectiveness-aid http://hdl.handle.net/10986/24852

id	okr-10986-24852
recordtype	oai_dc
spelling	okr-10986-248522021-04-23T14:04:27Z Geopolitics, Aid, and Growth : The Impact of UN Security Council Membership on the Effectiveness of Aid Dreher, Axel Eichenauer, Vera Z. Gehring, Kai aid effectiveness politics and aid united nations geopolitics The paper investigates the effects of short-term political motivations on the effectiveness of foreign aid. Specifically, the paper tests whether the effect of aid on economic growth is reduced by the share of years a country served on the United Nations Security Council (UNSC) in the period the aid is committed, which provides quasi-random variation in aid. The results show that the effect of aid on growth is significantly lower when aid was committed during a country's tenure on the UNSC. This holds when we restrict the sample to Africa, which follows the strictest norm of rotation on the UNSC and thus where UNSC membership can most reliably be regarded as exogenous. Two conclusions arise from this. First, short-term political favoritism reduces the effectiveness of aid. Second, results of studies using political interest variables as instruments for overall aid arguably estimate the effect of politically motivated aid and thus a lower bound for the effect of all aid. 2016-08-09T21:44:56Z 2016-08-09T21:44:56Z 2016-07 Working Paper http://documents.worldbank.org/curated/en/2016/07/26601455/geopolitics-aid-growth-impact-un-security-council-membership-effectiveness-aid http://hdl.handle.net/10986/24852 English en_US Policy Research Working Paper;No. 7771 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	aid effectiveness politics and aid united nations geopolitics
spellingShingle	aid effectiveness politics and aid united nations geopolitics Dreher, Axel Eichenauer, Vera Z. Gehring, Kai Geopolitics, Aid, and Growth : The Impact of UN Security Council Membership on the Effectiveness of Aid
relation	Policy Research Working Paper;No. 7771
description	The paper investigates the effects of short-term political motivations on the effectiveness of foreign aid. Specifically, the paper tests whether the effect of aid on economic growth is reduced by the share of years a country served on the United Nations Security Council (UNSC) in the period the aid is committed, which provides quasi-random variation in aid. The results show that the effect of aid on growth is significantly lower when aid was committed during a country's tenure on the UNSC. This holds when we restrict the sample to Africa, which follows the strictest norm of rotation on the UNSC and thus where UNSC membership can most reliably be regarded as exogenous. Two conclusions arise from this. First, short-term political favoritism reduces the effectiveness of aid. Second, results of studies using political interest variables as instruments for overall aid arguably estimate the effect of politically motivated aid and thus a lower bound for the effect of all aid.
format	Working Paper
author	Dreher, Axel Eichenauer, Vera Z. Gehring, Kai
author_facet	Dreher, Axel Eichenauer, Vera Z. Gehring, Kai
author_sort	Dreher, Axel
title	Geopolitics, Aid, and Growth : The Impact of UN Security Council Membership on the Effectiveness of Aid
title_short	Geopolitics, Aid, and Growth : The Impact of UN Security Council Membership on the Effectiveness of Aid
title_full	Geopolitics, Aid, and Growth : The Impact of UN Security Council Membership on the Effectiveness of Aid
title_fullStr	Geopolitics, Aid, and Growth : The Impact of UN Security Council Membership on the Effectiveness of Aid
title_full_unstemmed	Geopolitics, Aid, and Growth : The Impact of UN Security Council Membership on the Effectiveness of Aid
title_sort	geopolitics, aid, and growth : the impact of un security council membership on the effectiveness of aid
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/07/26601455/geopolitics-aid-growth-impact-un-security-council-membership-effectiveness-aid http://hdl.handle.net/10986/24852
_version_	1764457823234686976

Geopolitics, Aid, and Growth : The Impact of UN Security Council Membership on the Effectiveness of Aid

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