TITLE:
Whether the Allocation of International Aid Is Biased to Recipient Countries’ Exchange Rate Regime and Capital Openness?
AUTHORS:
Yaqi Sun, Yuanjun Zhao
KEYWORDS:
Component, International Financial Aid, Exchange Rate, Capital Openness
JOURNAL NAME:
Theoretical Economics Letters,
Vol.10 No.4,
August
31,
2020
ABSTRACT: This study investigates whether distribution of
international assistance is influenced by recipient countries’ exchange rate
regime and capital openness. Our empirical analysis finds that countries that
have more fixed exchange rate regime have more possibility to receive larger
foreign aid while the capital openness has no significant effects after
controlling for the country pair fixed effect. Bilateral trade interest may be
a potential explanation of the effects.