Are democratising countries ‘rewarded’ with higher levels of foreign aid?

Balazs Szent-Iványi*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


The paper examines how flows of foreign aid have reacted to events of democratisation in developing countries. Using a panel dataset of 136 aid-receiving countries between 1980 and 2009, aid allocation regressions reveal that Western donors in general have tended to react to visible, major democratic transitions by increasing aid to the partner country, but no significant increases can be identified in the case of countries introducing smaller democratic reforms. The increases in aid flows are not sustained over time, implying that donors do not provide long-term support to nascent democracies. Also, democratisations in Sub-Saharan Africa do not seem to have been rewarded with higher levels of aid.
Original languageEnglish
Pages (from-to)593-615
Number of pages23
JournalActa Oeconomica
Issue number4
Publication statusPublished - 4 Dec 2015

Bibliographical note

The archived file is not the final published version of the paper. Szent-Iványi, B. (2015). Are democratising countries ‘rewarded’ with higher levels of foreign aid?. Acta oeconomica. Vol.65, (4) p.593-615.


  • Aid allocation
  • Democratisation
  • Foreign aid


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