Foreign Aid Allocation and Socio-Political Instability

Chauvet, Lisa

Foreign Aid Allocation and Socio-Political Instability - 2002.


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This paper proposes an econometric analysis of the effects of three kinds of socio-political instability – violent, social and elite – on foreign aid allocation. Arellano and Bond [1991] application of the generalized method of moments estimations show that the effect of socio-political instabilities on aid allocation depends both on the kind of instability and on receiving countries’ characteristics (whether the receiving country is a low income country or an oil exporter). Classification JEL: C33, D74, F35, H77, O57

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