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Has Assistance from USAID been Successful for Democratization? Evidence from the Transition Economies of Eastern Europe and Eurasia

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  • Andreas Freytag
  • Jac C. Heckelman

Abstract

Over the past 20 years, democracy promotion has become a pillar of USAID´s mission. We assess the success of US aid by testing whether it is enhancing democracy in a panel of 26 transition countries. Using Freedom House Nations in Transit data, we find that aid has generally not been a significant factor in a country's overall democracy score, but has significantly contributed to certain components of the democracy score, namely civil society, electoral process, judicial framework, and media independence. In addition, the impact of aid is found to depend on the number of years of past central planning.

Suggested Citation

  • Andreas Freytag & Jac C. Heckelman, 2012. "Has Assistance from USAID been Successful for Democratization? Evidence from the Transition Economies of Eastern Europe and Eurasia," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 168(4), pages 636-657, December.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201212)168:4_636:hafubs_2.0.tx_2-s
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    References listed on IDEAS

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    Cited by:

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    2. Gnangnon, Sèna Kimm, 2021. "Effect of Development Aid on Productive Capacities," EconStor Preprints 233973, ZBW - Leibniz Information Centre for Economics.
    3. 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.
    4. Askarov, Zohid & Doucouliagos, Hristos, 2015. "Aid and institutions in transition economies," European Journal of Political Economy, Elsevier, vol. 38(C), pages 55-70.
    5. Sena Kimm Gnangnon, 2020. "A Note on the Algebra of Multiple Exchange Rates," Economics Bulletin, AccessEcon, vol. 40(1), pages 316-337.
    6. Gnangnon, Sèna Kimm, 2021. "Effect of the Utilization of Non-Reciprocal Trade Preferences offered by the QUAD on Economic Growth in Beneficiary Countries," EconStor Preprints 242848, ZBW - Leibniz Information Centre for Economics.

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    More about this item

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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