Determinants of Turkey’s foreign aid behavior – CORRIGENDUM

The determinants of foreign aid

The Role of Foreign Aid

Foreign aid and taxation, revisited∗

Existing research into the relationship between foreign aid and taxation in recipient countries has both conceptual and econometric failings. Empirical results based upon observed tax revenues conflate the effect of aid upon tax structures with the effect upon flows of taxable economic activity, most notably the level of imports. The use of variables normalized by GDP is also likely to generate...

Foreign Aid, Incentives and Efficiency: Can Foreign Aid Lead to Efficient Level of Investment?

This paper develops a two-period-two-country model in which an altruistic donor faces Samaritan’s Dilemma to address two important policy questions: (i) whether foreign aid can lead to efficient level of capital investment in the recipient country and (ii) how do the form (e.g. budgetary transfers, capital transfer) and the timing of aid affect the incentives of the recipient? It finds that the...

Foreign Aid and Enlightened Leaders

To study whether foreign aid fuels personal, regional and ethnic favoritism, we use satellite data on nighttime light for any region in any aid-recipient country, and we determine for each year and each country the region in which the current political leader was born. Having a panel with 22,850 regions in 91 aid recipient countries with yearly observations from 1992 to 2005, we compare the eff...