Axel Dreher
University of Heidelberg
Axel Dreher is professor of International and Development Politics at Heidelberg University. He has published in refereed journals like the International Economic Review, Journal of Development Economics, International Organization and the Journal of International Economics. He is Editor of the Review of International Organizations and author of the KOF Index of Globalization. Most of his current research is in the field of political economy, economic development, and globalization.
[Abstract] We investigate the effects of short-term political motivations on the effectiveness of foreign aid. Specifically, we test whether the effect of aid on economic growth is reduced by the share of years a country has served on the UNSC while the aid has been committed. Our results show that the effect of aid on growth is significantly lower when aid has been granted for political reasons. We conclude that political favoritism reduces growth.
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