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Aid and Democratization in the Transition Economies

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  • Jac C. Heckelman

Abstract

Past studies have not been supportive of the ability for foreign aid to create increased development and market liberalization. Less attention has been devoted to investigating the role aid has played in fostering democratic institutions. For a sample of 26 nations in Eastern Europe and former Soviet republics, I find more aid per capita is strongly associated with democratic reforms, but less robust is the relationship for aid as a percentage of gross national income. When analyzing various types of democratic freedoms, it appears both measures of aid improve the categories of judicial framework and governance, and aid per capita is also positively correlated with improvements in civil society and electoral process, but aid does not lead to more media independence.

Suggested Citation

  • Jac C. Heckelman, 2010. "Aid and Democratization in the Transition Economies," Kyklos, Wiley Blackwell, vol. 63(4), pages 558-579, November.
    • Handle: RePEc:bla:kyklos:v:63:y:2010:i:4:p:558-579
    DOI: 10.1111/j.1467-6435.2010.00488.x
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    References listed on IDEAS

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    Cited by:

    1. Dijkstra, Geske, 2018. "Aid and good governance: Examining aggregate unintended effects of aid," Evaluation and Program Planning, Elsevier, vol. 68(C), pages 225-232.
    2. Kersting, Erasmus & Kilby, Christopher, 2014. "Aid and democracy redux," European Economic Review, Elsevier, vol. 67(C), pages 125-143.
    3. Balázs Szent-Iványi, 2015. "Are Democratising Countries Rewarded with Higher Levels of Foreign Aid?," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(4), pages 593-615, December.
    4. Sonja Grimm & Okka Lou Mathis, 2018. "Democratization via aid? The European Union’s democracy promotion in the Western Balkans 1994–2010," European Union Politics, , vol. 19(1), pages 163-184, March.
    5. Zohid Askarov & Hristos Doucouliagos, 2013. "Does aid improve democracy and governance? A meta-regression analysis," Public Choice, Springer, vol. 157(3), pages 601-628, December.
    6. Audrey Menard, 2012. "Why foreign aid does (not) improve democracy?," Working Papers of BETA 2012-19, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    7. Hannes Öhler & Peter Nunnenkamp, 2014. "Needs-Based Targeting or Favoritism? The Regional Allocation of Multilateral Aid within Recipient Countries," Kyklos, Wiley Blackwell, vol. 67(3), pages 420-446, August.
    8. Miguel Niño-Zarazúa & Ana Horigoshi & Rachel M. Gisselquist, 2022. "Aid's impact on democracy," Working Papers 248, Department of Economics, SOAS University of London, UK.
    9. Dietrich, Simone & Wright, Joseph, 2012. "Foreign Aid and Democratic Development in Africa," WIDER Working Paper Series 020, World Institute for Development Economic Research (UNU-WIDER).
    10. Simone Dietrich & Joseph Wright, 2012. "Foreign Aid and Democratic Development in Africa," WIDER Working Paper Series wp-2012-020, World Institute for Development Economic Research (UNU-WIDER).
    11. Frot, Emmanuel & Olofsgård, Anders & Berlin, Maria Perrotta, 2014. "Aid Effectiveness in Times of Political Change: Lessons from the Post-Communist Transition," World Development, Elsevier, vol. 56(C), pages 127-138.
    12. Askarov, Zohid & Doucouliagos, Hristos, 2015. "Aid and institutions in transition economies," European Journal of Political Economy, Elsevier, vol. 38(C), pages 55-70.
    13. Yener Altunbas & John Thornton, 2014. "The (small) blessing of foreign aid: further evidence on aid's impact on democracy," Applied Economics, Taylor & Francis Journals, vol. 46(32), pages 3922-3930, November.
    14. repec:unu:wpaper:wp2012-20 is not listed on IDEAS

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