In this paper, foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent-seeking as opposed to productive activities. We construct a model of a small growing open economy that distinguishes two effects from foreign transfers: (i) a direct positive...

In this paper, foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent-seeking as opposed to productive activities. We construct a model of a small growing open economy that distinguishes two effects from foreign transfers: (i) a direct positive...

We investigate whether democracy aid flows, which are directed towards the democratization of recipients by covering democracy-related programs and government and civil society activities, affect the future political regime of recipient countries. We introduce a multinomial multivariate logit...

In this paper, foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent-seeking as opposed to productive activities. We construct a model of a small growing open economy that distinguishes two effects from foreign transfers: (i) a direct positive...

We investigate whether democratic aid flows, which are directed toward the democratization of recipients by covering democracy-related programs and government and civil society activities, affect the future political regime of recipient countries. We introduce a multinomial multivariate logit...