Description: Existing literature on foreign aid does not indicate what type of political regime is best to achieve human development outcomes or use aid funds more efficiently. I contend that political leaders of different regime types have personal incentives that motivate them to utilize foreign aid to reflect their interests in providing more or less basic social services for their citizens. Using a data set of 126 aid-recipient countries between the years of 1990 and 2007, I employ fixed effects estimation to test the model. The overall results of this research indicate that foreign aid and democratic institutionalization have a positive effect on total enrollment in primary education, while political regime types show little difference from one another in providing public health and education for their citizens.
Date: December 2009
Creator: Phan, Thu Anh