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  • Aid us winning the elections [Elektronski vir] : foreign aid and voter turnout
    Kunčič, Aljaž
    Existing literature on the erects of foreign aid on political institutions of aid receiving coun- tries uses broadly constructed aggregated indices as measures for political institutions. This paper ... adds to the literature by using an innovative process to determine what is the erect of foreign aid on institutions of governance. We use voter turnout as an indicator variable which allows us to identify whether the political competition in a country is based on private goods such as vote buying, implying a negative erect on institutions of governance, or on public goods, implying a positive erect on institutions of governance. Calculus of voting allows us to build on Collier and Hoeffler (2009) model of political behaviour and show how foreign aid can be linked to voter turnout. We suggest that the marginal erect of foreign aid on voter turnout depends on the wider underlying institutional setting. Contrary to the popular belief, the model implies that a higher voter turnout in response to foreign aid can be undesirable, when the increase is a consequence of vote buying in the electoral campaign. The empirical evidence we examine is consistent with private goods political competition, i.e. political parties use foreign aid for vote buying and similar electoral tactics, particularly when the underlying institutions are su ciently bad. This is consistently estimated across speci cations which address a range of endogeneity sources.
    Vir: Financing development in a post-crisis world [Elektronski vir] : the need for a fresh look
    Vrsta gradiva - prispevek na konferenci
    Leto - 2011
    Jezik - angleški
    COBISS.SI-ID - 30212445

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