IDEAS home Printed from https://ideas.repec.org/a/bla/ecopol/v22y2010i2p200-232.html
   My bibliography  Save this article

The Political Economy Of U.S. Foreign Aid: American Legislators And The Domestic Politics Of Aid

Author

Listed:
  • HELEN V. MILNER
  • DUSTIN H. TINGLEY

Abstract

Are there systematic political economy factors that shape preferences for foreign aid, a key component of American foreign policy? We analyze votes in the House of Representatives from 1979 to 2003 that would increase or decrease foreign aid by considering the political, economic, and ideological characteristics of legislators and their districts. To understand who supports and opposes foreign aid, we utilize theories of foreign economic policy preferences. By examining different types of aid policy, we show that domestic politics and especially the distributional consequences of economic aid can matter. The economic characteristics of a district and its left–right ideological predispositions influence support for aid in a systematic fashion over the nearly 25‐year period. Stolper–Samuelson models along with political ideology can help explain legislators' preferences toward aid.

Suggested Citation

  • Helen V. Milner & Dustin H. Tingley, 2010. "The Political Economy Of U.S. Foreign Aid: American Legislators And The Domestic Politics Of Aid," Economics and Politics, Wiley Blackwell, vol. 22(2), pages 200-232, July.
  • Handle: RePEc:bla:ecopol:v:22:y:2010:i:2:p:200-232
    DOI: 10.1111/j.1468-0343.2009.00356.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0343.2009.00356.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1468-0343.2009.00356.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Baldwin, Robert E & Magee, Christopher S, 2000. "Is Trade Policy for Sale? Congressional Voting on Recent Trade Bills," Public Choice, Springer, vol. 105(1-2), pages 79-101, October.
    2. Broz, J. Lawrence & Hawes, Michael Brewster, 2006. "Congressional Politics of Financing the International Monetary Fund," International Organization, Cambridge University Press, vol. 60(2), pages 367-399, April.
    3. Robert K. Fleck & Christopher Kilby, 2006. "How Do Political Changes Influence US Bilateral Aid Allocations? Evidence from Panel Data," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 210-223, May.
    4. Scheve, Kenneth F. & Slaughter, Matthew J., 2001. "What determines individual trade-policy preferences?," Journal of International Economics, Elsevier, vol. 54(2), pages 267-292, August.
    5. Eugene Beaulieu, 2002. "Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper–Samuelson Theorem," Economics and Politics, Wiley Blackwell, vol. 14(2), pages 99-131, July.
    6. Wolfgang Mayer & Pascalis Raimondos‐Møller, 2003. "The Politics of Foreign Aid: A Median Voter Perspective," Review of Development Economics, Wiley Blackwell, vol. 7(2), pages 165-178, May.
    7. Alesina, Alberto & Dollar, David, 2000. "Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
    8. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    9. Thérien, Jean-Philippe & Noël, Alain, 2000. "Political Parties and Foreign Aid," American Political Science Review, Cambridge University Press, vol. 94(1), pages 151-162, March.
    10. Wolfgang Mayer & Pascalis Raimondos-Møller, "undated". "The Politics of Foreign Aid," EPRU Working Paper Series 99-07, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    11. Younas, Javed, 2008. "Motivation for bilateral aid allocation: Altruism or trade benefits," European Journal of Political Economy, Elsevier, vol. 24(3), pages 661-674, September.
    12. Magee,Stephen P. & Brock,William A. & Young,Leslie, 1989. "Black Hole Tariffs and Endogenous Policy Theory," Cambridge Books, Cambridge University Press, number 9780521377003.
    13. Dudley, Leonard & Montmarquette, Claude, 1976. "A Model of the Supply of Bilateral Foreign Aid," American Economic Review, American Economic Association, vol. 66(1), pages 132-142, March.
    14. Markus Goldstein & Todd Moss, 2005. "Compassionate conservatives or conservative compassionates? US political parties and bilateral foreign assistance to Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1288-1302.
    15. Murshed, S. Mansoob, 2004. "Strategic interaction and donor policy determination," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 311-323.
    16. repec:bla:reviec:v:10:y:2002:i:2:p:343-60 is not listed on IDEAS
    17. Przeworski, Adam, 2009. "Conquered or Granted? A History of Suffrage Extensions," British Journal of Political Science, Cambridge University Press, vol. 39(2), pages 291-321, April.
    18. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 961-987, December.
    19. Peltzman, Sam, 1984. "Constituent Interest and Congressional Voting," Journal of Law and Economics, University of Chicago Press, vol. 27(1), pages 181-210, April.
    20. Eugene Beaulieu & Christopher Magee, 2004. "Four Simple Tests of Campaign Contributions and Trade Policy Preferences," Economics and Politics, Wiley Blackwell, vol. 16(2), pages 163-187, July.
    21. J. Lawrence Broz, 2005. "Congressional Politics of International Financial Rescues," American Journal of Political Science, John Wiley & Sons, vol. 49(3), pages 479-496, July.
    22. Chong, Alberto & Gradstein, Mark, 2008. "What determines foreign aid? The donors' perspective," Journal of Development Economics, Elsevier, vol. 87(1), pages 1-13, August.
    23. Kenneth F. Scheve & Matthew J. Slaughter, 2001. "Labor Market Competition And Individual Preferences Over Immigration Policy," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 133-145, February.
    24. Douglas D. Roscoe & Shannon Jenkins, 2005. "A Meta‐Analysis of Campaign Contributions' Impact on Roll Call Voting," Social Science Quarterly, Southwestern Social Science Association, vol. 86(1), pages 52-68, March.
    25. Bruce Bueno de Mesquita & Alastair Smith, 2007. "Foreign Aid and Policy Concessions," Journal of Conflict Resolution, Peace Science Society (International), vol. 51(2), pages 251-284, April.
    26. Mak Arvin & Bruce Cater & Saud Choudhry, 2000. "A causality analysis of untied foreign assistance and export performance: the case of Germany," Applied Economics Letters, Taylor & Francis Journals, vol. 7(5), pages 315-319.
    27. Jagdish Bhagwati & Richard Brecher & Tatsuo Hatta, 1984. "The paradoxes of immiserizing growth and donor-enriching “recipient-immiserizing” transfers: A tale of two literatures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 120(2), pages 228-243, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Axel Dreher & Peter Nunnenkamp & Maya Schmaljohann, 2015. "The Allocation of German Aid: Self-interest and Government Ideology," Economics and Politics, Wiley Blackwell, vol. 27(1), pages 160-184, March.
    2. Tingley, Dustin, 2010. "Donors and domestic politics: Political influences on foreign aid effort," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(1), pages 40-49, February.
    3. repec:unu:wpaper:wp2012-25 is not listed on IDEAS
    4. Gravier-Rymaszewska, Joanna, 2012. "How Aid Supply Responds to Economic Crises: A Panel VAR Approach," WIDER Working Paper Series 025, World Institute for Development Economic Research (UNU-WIDER).
    5. Minasyan, Anna, 2018. "US aid, US educated leaders and economic ideology," European Journal of Political Economy, Elsevier, vol. 55(C), pages 244-257.
    6. Brech, Viktor & Potrafke, Niklas, 2014. "Donor ideology and types of foreign aid," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 61-75.
    7. Fleck, Robert K. & Kilby, Christopher, 2010. "Changing aid regimes? U.S. foreign aid from the Cold War to the War on Terror," Journal of Development Economics, Elsevier, vol. 91(2), pages 185-197, March.
    8. Joanna Gravier-Rymaszewska, 2012. "How Aid Supply Responds to Economic Crises: A Panel VAR Approach," WIDER Working Paper Series wp-2012-025, World Institute for Development Economic Research (UNU-WIDER).
    9. Hendrik KRUSE & Thais NUNEZ-ROCHA & Camélia TURCU, 2019. "Infrastructure aid for resource trade? The crossroads of strategy and sustainable development," LEO Working Papers / DR LEO 2728, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    10. Ball, Richard, 2010. "Cultural values and public policy: The case of international development aid," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(1), pages 3-16, February.
    11. Katharina Stepping, 2012. "Do poor health conditions lead to higher allocation of development assistance?," MAGKS Papers on Economics 201230, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    12. Barthel, Fabian & Neumayer, Eric & Nunnenkamp, Peter & Selaya, Pablo, 2014. "Competition for Export Markets and the Allocation of Foreign Aid: The Role of Spatial Dependence among Donor Countries," World Development, Elsevier, vol. 64(C), pages 350-365.
    13. Nagae, Akira & Katayama, Hajime & Takase, Koichi, 2022. "Donor aid allocation and accounting standards of recipients," Economic Modelling, Elsevier, vol. 106(C).
    14. Tobias Heinrich & Yoshiharu Kobayashi, 2022. "Evaluating explanations for poverty selectivity in foreign aid," Kyklos, Wiley Blackwell, vol. 75(1), pages 30-47, February.
    15. kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade 0503003, University Library of Munich, Germany.
    16. Subhayu Bandyopadhyay & Sajal Lahiri & Javed Younas, 2013. "Financing growth: foreign aid vs. foreign loans," Working Papers 2013-031, Federal Reserve Bank of St. Louis.
    17. Broich, Tobias, 2017. "Do authoritarian regimes receive more Chinese development finance than democratic ones? Empirical evidence for Africa," China Economic Review, Elsevier, vol. 46(C), pages 180-207.
    18. Robert K. Fleck & Christopher Kilby, 2006. "World Bank Independence: A Model and Statistical Analysis of US Influence," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 224-240, May.
    19. Bohara, Alok K. & Camargo, Alejandro Islas & Grijalva, Therese & Gawande, Kishore, 2005. "Fundamental dimensions of U.S. trade policy," Journal of International Economics, Elsevier, vol. 65(1), pages 93-125, January.
    20. Chapda Nana, Guy & Larue, Bruno & Gervais, Jean-Philippe, 2012. "Regional integration and dynamic adjustments: Evidence from gross national product functions for Canada and the United States," The North American Journal of Economics and Finance, Elsevier, vol. 23(2), pages 246-264.
    21. Raschky, Paul A. & Schwindt, Manijeh, 2012. "On the channel and type of aid: The case of international disaster assistance," European Journal of Political Economy, Elsevier, vol. 28(1), pages 119-131.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecopol:v:22:y:2010:i:2:p:200-232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.