The curse of aid

  title={The curse of aid},
  author={Simeon Djankov and Jose G Montalvo and Marta Reynal-Querol},
  journal={Journal of Economic Growth},
Foreign aid provides a windfall of resources to recipient countries and may result in the same rent seeking behavior as documented in the “curse of natural resources” literature. In this paper we discuss this effect and document its magnitude. Using panel data for 108 recipient countries in the period 1960–1999, we find that foreign aid has a negative impact on institutions. In particular, if the foreign aid over GDP that a country receives over a period of 5 years reaches the 75th percentile… 

Rents and the Political Economy of Development Aid

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Aid Is Not Oil: Donor Utility, Heterogeneous Aid, and the Aid-Democratization Relationship

  • S. Bermeo
  • Economics
    International Organization
  • 2015
Abstract Recent articles conclude that foreign aid, like other nontax resources, inhibits political change in authoritarian regimes. This article challenges both the negative political effects of aid

Aid and democracy redux




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