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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Ethnic fractionalisation and aid effectiveness
Authors:Hodler, RolandISNI
Knight, David S.
Year:2012
Periodical:Journal of African Economies (ISSN 0963-8024)
Volume:21
Issue:1
Pages:65-93
Language:English
Geographic terms:Africa
developing countries
Subjects:ethnic conflicts
economic development
development cooperation
External link:https://jae.oxfordjournals.org/content/21/1/65.full.pdf
Abstract:The authors test the hypothesis that the effect of foreign aid on economic growth is positive in ethnically homogenous countries, but decreasing in ethnic fractionalization. Using panel data covering 114 aid-recipient countries over the period 1962 to 2001, and employing two-stage least squares and GMM estimation techniques, the authors find a strong support for this hypothesis. The estimates suggest that foreign aid promotes growth in ethnically homogenous countries, while being ineffective or even harmful in many sub-Saharan African countries and some ethnically fractionalized countries elsewhere. App., bibliogr., notes, ref, sum. [Journal abstract]
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