Djankov, Simeon; Montalvo, José G.; Reynal-Querol, Marta - Barcelona Graduate School of Economics (Barcelona GSE) - 2005
data for 108 recipient countries in the period 1960 to 1999, we find that foreign aid has a negative impact on democracy … percentile in the sample, then a 10-point index of democracy is reduced between 0.6 and one point, a large effect. For comparison …, we also measure the effect of oil rents on political institutions. The fall in democracy if oil revenues reach the 75th …