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Do Elites Benefit from Democracy and Foreign Aid in Developing Countries?

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Do Elites Benefit from Democracy and Foreign Aid in Developing Countries? / Bjørnskov, Christian.

In: Journal of Development Economics, Vol. 92, No. 2, 2010, p. 115-124.

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Bjørnskov, Christian. / Do Elites Benefit from Democracy and Foreign Aid in Developing Countries?. In: Journal of Development Economics. 2010 ; Vol. 92, No. 2. pp. 115-124.

Bibtex

@article{21c1a190089911de8564000ea68e967b,
title = "Do Elites Benefit from Democracy and Foreign Aid in Developing Countries?",
abstract = "A popular argument for the absence of any beneficial effects of foreign aid is that it is skimmed by political elites in recipient countries. However, studies also suggest that aid may be more effective in relatively democratic developing countries. By exploring data on income quintiles derived from the World Income Inequality Database for 88 developing countries, a set of results indicate that foreign aid and democracy in conjunction are associated with a higher share of income held by the upper quintile. It thus appears that foreign aid, contrary to popular beliefs, leads to a more skewed income distribution in democratic developing countries while the effects are negligible in autocratic countries. The paper closes with a discussion of potential mechanisms generating this perverse effect.",
keywords = "Inequality, Foreign aid, Democracy",
author = "Christian Bj{\o}rnskov",
year = "2010",
doi = "10.1016/j.jdeveco.2009.03.001",
language = "English",
volume = "92",
pages = "115--124",
journal = "Journal of Development Economics",
issn = "0304-3878",
publisher = "Elsevier BV",
number = "2",

}

RIS

TY - JOUR

T1 - Do Elites Benefit from Democracy and Foreign Aid in Developing Countries?

AU - Bjørnskov, Christian

PY - 2010

Y1 - 2010

N2 - A popular argument for the absence of any beneficial effects of foreign aid is that it is skimmed by political elites in recipient countries. However, studies also suggest that aid may be more effective in relatively democratic developing countries. By exploring data on income quintiles derived from the World Income Inequality Database for 88 developing countries, a set of results indicate that foreign aid and democracy in conjunction are associated with a higher share of income held by the upper quintile. It thus appears that foreign aid, contrary to popular beliefs, leads to a more skewed income distribution in democratic developing countries while the effects are negligible in autocratic countries. The paper closes with a discussion of potential mechanisms generating this perverse effect.

AB - A popular argument for the absence of any beneficial effects of foreign aid is that it is skimmed by political elites in recipient countries. However, studies also suggest that aid may be more effective in relatively democratic developing countries. By exploring data on income quintiles derived from the World Income Inequality Database for 88 developing countries, a set of results indicate that foreign aid and democracy in conjunction are associated with a higher share of income held by the upper quintile. It thus appears that foreign aid, contrary to popular beliefs, leads to a more skewed income distribution in democratic developing countries while the effects are negligible in autocratic countries. The paper closes with a discussion of potential mechanisms generating this perverse effect.

KW - Inequality

KW - Foreign aid

KW - Democracy

U2 - 10.1016/j.jdeveco.2009.03.001

DO - 10.1016/j.jdeveco.2009.03.001

M3 - Journal article

VL - 92

SP - 115

EP - 124

JO - Journal of Development Economics

JF - Journal of Development Economics

SN - 0304-3878

IS - 2

ER -