Marjit, Sugata; Mukherjee, Vivekananda - In: Theory and practice of foreign aid, (pp. 17-29). 2006
This paper looks at the role of redistributive politics and corruption in the utilization of foreign aid. We find that the governments in relatively poor countries have incentive to adopt ‘bad policies’ which do not improve the growth rate of the economy. On the other hand, the governments...