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What is Foreign Aid about?
This document summarizes a study examining the relationship between foreign aid and democracy. The study finds that foreign aid has a negative impact on democracy in recipient countries. Specifically, if a country receives foreign aid equivalent to the 75th percentile of aid/GDP ratios over 5 years, their democracy score is reduced by 0.6 to 1 point on a 10-point scale. In contrast, oil revenues equivalent to the 75th percentile ratio reduces democracy by only 0.02 points. Thus, the study finds that foreign
- Author
- jhg
- Language
- EN