Journal Article

Democracy and Aid Donorship

Date Published

Nov 1, 2021


Angelika J. Budjan, Andreas Fuchs


American Economic Journal: Economic Policy


Budjan, Angelika J., and Andreas Fuchs. 2021. "Democracy and Aid Donorship." American Economic Journal: Economic Policy, 13 (4): 217-38. DOI: 10.1257/pol.20180582

Note: A version of this article was previously published as an AidData Working Paper.


Almost half of the world's states provide bilateral development assistance. While previous research takes the set of donor countries as exogenous, this article introduces a new dataset on aid giving that covers all countries in the world, both rich and poor, and explores the determinants of aid donorship. It argues and shows empirically that democratic institutions support the setup of an aid program in richer countries but undermine its establishment in poorer countries. The findings hold in instrumental-variable regressions and the pattern is similar for the amount of aid.

Featured Authors

Andreas Fuchs

Andreas Fuchs

Professor of Development Economics at the University of Goettingen

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