- (Source: World Development Indicators, 2005). Base countries sample (71 countries-African countries in bold characters) Algeria, Argentina, Bahrain, Bangladesh, Benin, Bolivia, Botswana, Brazil, Burkina Faso, Burundi, Cameroon, Central African Rep., Chad, Colombia, Congo (Rep.), Costa Rica, Ivory Coast, Cyprus, Dominican Rep., Ecuador, Egypt, El Salvador, Fiji, Ghana, Guatemala, Honduras, India, Indonesia, Iran, Islamic Rep., Israel, Jamaica, Jordan, Kenya, Kuwait, Lao PDR, Lesotho, Liberia, Malawi, Malaysia, Mali, Mauritania, Mexico, Morocco, Mozambique, Nepal, Nicaragua, Niger, Nigeria, Oman, Pakistan, Panama, Paraguay, Peru, Philippines, Rwanda, Saudi Arabia, Senegal, Singapore, Sri Lanka, Sudan, Syrian Arab Republic, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, United Arab Emirates, Uruguay, Venezuela, Zimbabwe.
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Acemoglu, D., S. Johnson, and J. Robinson (2001): “The Colonial Origins of Comparative Development: An Empirical Investigation,†American Economic Review, 91(5), 1369–1401.
Acemoglu, D., S. Johnson, J. Robinson, and Y. Thaicharoen (2003): “Institutional Causes, Macroeconomic Symptoms: Volatility, Crises And Growth,†Journal of Monetary Economics, 50(1), 49–123.
- Aid%GDP = Net aggregate o cial development assistance transfers (2004 $US millions) as share of gross domestic product (Source: author’s calculations from Development Assistance 16 Aid includes grants and concessionary loans with a grant element of more than 25%. Military assistance is excluded.
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Alesina, A., and B. Weder (2002): “Do Corrupt Governments Receive Less Foreign Aid?,†American Economic Review, 92(4), 1126–1137.
Almeida, H., and D. Ferreira (2002): “Democracy and the Variability of Economic Performance,†Economics and politics, 14(3), 225–257.
- APPENDIX B: data description Aid per capita16 = Net aggregate o cial development assistance transfers (2004 $US millions) per capita (Source: author’s calculations from Development Assistance Committee (DAC) online database and World Development Indicators, 2005).
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- Brautigam, D., and S. Knack (2004): “Foreign Aid, Institutions, and Governance in SubSaharan Africa,†Economic Development and Cultural Change, 52, 255–285.
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- Brun, J.-F., G. Chambas, and S. Guerineau (2006): “Aide et mobilisation fiscale dans les pays en développement,†AFD Programme RCH Aide et politique budgétaire 065-2006, AFD.
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- Chauvet, L., and P. Guillaumont (2004): Towards Pro-Poor Policies-Aid, Institutions and Globalization, chap. Aid and Growth Revisited : Policy, Economic Vulnerability and Political Instability, pp. 111–131. World Bank/Oxford University Press.
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Chauvet, L., and P. Guillaumont (2007): “Aid, Volatility and Growth Again: When Aid Volatility Matters and When It Does Not,†Forthcoming in the Review of Development Economics.
Collier, P., and B. Goderis (2007): “Does Aid Mitigate External shocks?,†WPS 2007-18, CSAE.
Collier, P., and J. Dehn (2001): “Aid, Shocks and Growth,†Policy Research Working Paper 2688, The World Bank.
- Committee (DAC) online database and World Development Indicators, 2005). Polity2 index = Combined democracy and autocracy score, ranged from-10(full autocracy) to +10(full democracy). (Source: Polity IV project). Freedom House index = Democracy index, ranged from 1(best democratic situation) to +7(worse situation). (Source: Freedom House). Terms of trade instability = Net barter terms of trade instability (see section 5.2 for the calculation method). (Source: author’s calculation).
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Coviello, D., and R. Islam (2006): “Does aid help improve economic institutions?,†Policy Research Working Paper Series 3990, The World Bank.
Djankov, S., J. Montalvo, and M. Reynal-Querol (2008): “The curse of aid,†Journal of economic growh, 13(3), 169–194.
Easterly, W., and A. Kraay (2000): “Small States, Small Problems? Income, Growth and Volatility in Small States,†World Development, 28(11), 2013–2027.
- Education = Literacy rate, adult total (% of people 15+). (Source: World Development Indicators, 2005). Ethnolinguistic fractionalisation= Probability that two persons randomly selected in the population don’t belong to the same ethnic group. (Source: Atlas Narodov Mira).
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- FMI (2005): Perspectives de l’économie mondiale: Développement institutionnel. Département des études économiques et financières.
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- Geography = Distance from equator of capital city measured as abs (latitude)/90. (Source: World Bank (2002)).
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Goldsmith, A. (2001): “Foreign Aid and Statehood in Africa,†International Organization, 55(1), 123–148.
Guillaumont, P., and L. Chauvet (2001): “Aid and Performance: A Reassessment,†The Journal of Development Studies, 37(6), 66–92.
Hall, r., and C. Jones (1999): “Why Do Some Countries Produce So Much More Output per Worker than Others?,†Quarterly Journal of Economics, 1(114), 83–116.
Helliwell, J. (1994): “Empirical Linkages between Democracy and Economic Growth,†British Journal of Political Science, 24(2), 225–248.
- Hoffman, B. (2003): “Development despots: foreign aid, domestic policies, and the quality of governance,†University of California San Diego.
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- Horowitz, D. (1993): “Democracy in divided societies,†Journal of Democracy, 4, 18–38.
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- Income growth = Natural logarithm of GDP per capita growth (2000 US dollars and PPP).
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- Income instability = instability of GDP per capita (2000 US $), computed with the calculation method described in section 5.2 (Source: author’s calculation).
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- Initial income = Natural logarithm of GDP per capita in 1980 (2000 US dollars and PPP).
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- Kalyvitis, S., and I. Vlachaki (2005): “Foreign aid and democratisation: Evidence from a multinomial logit model,†Athens University of Economics and Business.
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Knack, S. (2001): “Aid Dependence and the Quality of Governance: a Cross Country Empirical Test,†Southern Economic Journal, 68(2), 310–329.
- Knack, S. (2004): “Does Foreign Aid Promotes Democracy?†International Studies Quarterly, 48, 251–256.
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Knack, S., and A. Rahman (2004): “Donor fragmentation and bureaucratic quality in aid recipients,†Policy Research Working Paper Series 3186, The World Bank.
- Life expectancy = Life expectancy at birth, for total population (years). (Source: World Development Indicators, 2005). Africa = Dummy variable taking value 1 if a country belongs to Africa, 0 otherwise. (Source: author).
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- Lijphart, A. (1977): Democracy in Plural Societies: A comparative exploration. New Haven: Yale University Press.
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Lipset, S. (1959): “Some Social Requisites of Democracy: Economic Development and Political Legitimacy,†The American Political Science Review, 53(1), 69–105.
- McNab, R., and S. Everhart (2002): Rotting from the Head: Donors and LDC Corruption chap. Aid, Governance, and Growth, p. Part 2. University Press Bangladesh.
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Mendoza, E. (1997): “Terms of trade uncertainty and economic growth,†Journal of development economics, 54(2), 323–356.
Mobarak, A. M. (2005): “Democracy, volatility and economic development,†The review of economics and statistics, 87(2), 348–361.
- North, D. (1990): Institutions, Institutional Change, and Economic Performance. Cambridge University Press.
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- Quinn, D., and J. Woolley (2001): “Democracy and national economic performance: the preference for stability,†American journal of political science, 45(3), 634–657.
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Ramey, G., and V. Ramey (1995): “Cross-Country Evidence on the Link Between Volatility and Growth,†The American Economic Review, 85(5), 1138–1151.
- Rodrik, D. (1997): “Democracy and Economic Performance,†http://ksghome.harvard.edu/.drodrik.academic.ksg/demoecon.PDF.
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Rodrik, D. (2000): “Institutions for High-Quality Growth: What They are and How to Acquire Them,†NBER Working Papers 7540, National Bureau of Economic Research, Inc.
Rodrik, D., A. Subramanian, and F. Trebbi (2004): “Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development,†Journal of Economic Growth, 9(2), 131–165.
- Sachs, J., and A. Warner (1997): “Natural resource abundance and economic growth,†Center for International Development and Harvard Institute for International Development.
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- Settler mortality = Natural logarithm of estimated european settlers’ mortality rate. (Source: Acemoglu, Johnson, and Robinson (2001)).
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Svensson, J. (2000): “Foreign aid and rent-seeking,†Journal of International Economics, 51(2), 437–461.
Tavares, J. (2003): “Does foreign aid corrupt?,†Economics Letters, 79(1), 99–106.