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Vol. 89, No. 6 (Posted 2007-11-01)

The Determinants of Aid in the Post-Cold War Era

by Subhayu Bandyopadhyay and Howard J. Wall

The authors estimate the responsiveness of aid to recipient countries’ economic and physical needs, civil/political rights, and government effectiveness. They look exclusively at the post-Cold War era and use fixed effects to control for the political, strategic, and other considerations of donors. They find that aid and per capita income have been negatively related, while aid has been positively related to infant mortality, rights, and government effectiveness.

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