Replication data for: How Is Foreign Aid Spent? Evidence from a Natural Experiment

Principal Investigator(s):  View help for Principal Investigator(s) Eric Werker; Faisal Z. Ahmed; Charles Cohen

Version:  View help for Version V1

Name File Type Size Last Modified
AEJMacro-20070057.do text/plain 27.5 KB 10/12/2019 03:10:PM
AEJMacro-20070057.dta application/octet-stream 2.5 MB 10/12/2019 03:10:PM
LICENSE.txt text/plain 14.6 KB 10/12/2019 03:10:PM
readme.pdf application/pdf 19 KB 10/12/2019 03:10:PM

Project Citation: 

Werker, Eric, Ahmed, Faisal Z., and Cohen, Charles. Replication data for: How Is Foreign Aid Spent? Evidence from a Natural Experiment. Nashville, TN: American Economic Association [publisher], 2009. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114045V1

Project Description

Summary:  View help for Summary We use oil price fluctuations to test the impact of transfers from wealthy OPEC nations to their poorer Muslim allies. The instrument identifies plausibly exogenous variation in foreign aid. We investigate how aid is spent by tracking its short-run effect on aggregate demand, national accounts, and balance of payments. Aid affects most components of GDP though it has no statistically identifiable impact on prices or economic growth. Much aid is consumed, primarily in the form of imported noncapital goods. Aid substitutes for domestic savings, has no effect on the financial account, and leads to unaccounted capital flight. (JEL F35, O19)

Scope of Project

JEL Classification:  View help for JEL Classification
      F35 Foreign Aid
      O19 International Linkages to Development; Role of International Organizations
Geographic Coverage:  View help for Geographic Coverage Global
Data Type(s):  View help for Data Type(s) aggregate data

Methodology

Data Source:  View help for Data Source World Development Indicators (World Bank)
Unit(s) of Observation:  View help for Unit(s) of Observation Country and year,

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V1 [2019-10-12]

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