Who Gives Foreign Aid to Whom and Why

摘要: This paper studies the pattern of allocation foreign aid from various donors to receiving countries. We find considerable evidence that direction is dictated as much by political and strategic considerations, economic needs policy performance recipients. Colonial past alliances are major determinants aid. At margin, however, countries democratize receive more aid, ceteris paribus. While flows respond variables, direct investments sensitive incentives, particularly “good policies” protection property rights in also uncover significant differences behavior different donors.