{"title":"Foreign Aid, Winning Coalitions, and Economic Growth","authors":"Yunhee Choi","doi":"10.1525/as.2023.1999358","DOIUrl":null,"url":null,"abstract":"This paper examines the conditional effectiveness of foreign aid for economic growth. Theoretically, I argue that to maximize the chance to stay in office, the leaders of a large winning coalition will spend the aid money as intended, to provide public goods, which aids economic growth. On the other hand, leaders of a small winning coalition will spend the money on private goods, which is less effective for growth. To test this argument, I construct a panel data set for 28 Asian countries (1990–2010) and apply the generalized method of moments. I find that the interaction between ODA and coalition size significantly affects economic growth. Broadly, for large winning coalitions, growth rate increases with higher ODA, while for small winning coalitions it decreases with higher ODA.","PeriodicalId":47691,"journal":{"name":"Asian Survey","volume":"1 1","pages":""},"PeriodicalIF":1.3000,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asian Survey","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1525/as.2023.1999358","RegionNum":4,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
This paper examines the conditional effectiveness of foreign aid for economic growth. Theoretically, I argue that to maximize the chance to stay in office, the leaders of a large winning coalition will spend the aid money as intended, to provide public goods, which aids economic growth. On the other hand, leaders of a small winning coalition will spend the money on private goods, which is less effective for growth. To test this argument, I construct a panel data set for 28 Asian countries (1990–2010) and apply the generalized method of moments. I find that the interaction between ODA and coalition size significantly affects economic growth. Broadly, for large winning coalitions, growth rate increases with higher ODA, while for small winning coalitions it decreases with higher ODA.
期刊介绍:
The only academic journal of its kind produced in the United States, Asian Survey provides a comprehensive retrospective of contemporary international relations within South, Southeast, and East Asian nations. As the Asian community’s matrix of activities becomes increasingly complex, it is essential to have a sourcebook for sound analysis of current events, governmental policies, socio-economic development, and financial institutions. In Asian Survey you’ll find that sourcebook. Asian Survey consistently publishes articles by leading American and foreign scholars, whose views supplement and contest meanings disseminated by the media.