The contributions of foreign aid and natural resource wealth to democratic institutions: Evidence from over 40 years of sub-Sahara Africa's history
This study evaluates the influence of natural resource rents and foreign aid on democracy using panel data from 45 SSA countries from 1980 to 2021. Using five different democracy indices, six different foreign aid variables and six different natural resource rent variables, our endogeneity-corrected...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-01-01
|
| Series: | Journal of Government and Economics |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2667319324000363 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832594120618541056 |
|---|---|
| author | Alex O. Acheampong John Taden |
| author_facet | Alex O. Acheampong John Taden |
| author_sort | Alex O. Acheampong |
| collection | DOAJ |
| description | This study evaluates the influence of natural resource rents and foreign aid on democracy using panel data from 45 SSA countries from 1980 to 2021. Using five different democracy indices, six different foreign aid variables and six different natural resource rent variables, our endogeneity-corrected results establish the following conclusions: (i) all the democracy indices respond positively and significantly to multilateral foreign aid, total development assistance committee (DAC) aid and bilateral aid from Australia, the USA, the United Nations, and the European Union (ii) the political resource curse, rentier and repression theories are valid for rent from mineral, gas and oil resources (iii) the democracy indices respond positively and significantly to rent from coal and forest resources (iv) the effect of foreign aid on the democracy indices is contingent on natural resource wealth (v) these findings are robust to an alternative econometric estimation technique and specifications. The policy implications are discussed. |
| format | Article |
| id | doaj-art-12f8c3aceef94fad8312763f048594bb |
| institution | Kabale University |
| issn | 2667-3193 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Government and Economics |
| spelling | doaj-art-12f8c3aceef94fad8312763f048594bb2025-01-20T04:18:03ZengElsevierJournal of Government and Economics2667-31932024-01-0116100132The contributions of foreign aid and natural resource wealth to democratic institutions: Evidence from over 40 years of sub-Sahara Africa's historyAlex O. Acheampong0John Taden1Bond Business School, Bond University, Gold Coast, Australia; Centre for Data Analytics, Bond University, Gold Coast, Australia; Corresponding author.Pepperdine University, Malibu, CA, USAThis study evaluates the influence of natural resource rents and foreign aid on democracy using panel data from 45 SSA countries from 1980 to 2021. Using five different democracy indices, six different foreign aid variables and six different natural resource rent variables, our endogeneity-corrected results establish the following conclusions: (i) all the democracy indices respond positively and significantly to multilateral foreign aid, total development assistance committee (DAC) aid and bilateral aid from Australia, the USA, the United Nations, and the European Union (ii) the political resource curse, rentier and repression theories are valid for rent from mineral, gas and oil resources (iii) the democracy indices respond positively and significantly to rent from coal and forest resources (iv) the effect of foreign aid on the democracy indices is contingent on natural resource wealth (v) these findings are robust to an alternative econometric estimation technique and specifications. The policy implications are discussed.http://www.sciencedirect.com/science/article/pii/S2667319324000363C25D70F35 |
| spellingShingle | Alex O. Acheampong John Taden The contributions of foreign aid and natural resource wealth to democratic institutions: Evidence from over 40 years of sub-Sahara Africa's history Journal of Government and Economics C25 D70 F35 |
| title | The contributions of foreign aid and natural resource wealth to democratic institutions: Evidence from over 40 years of sub-Sahara Africa's history |
| title_full | The contributions of foreign aid and natural resource wealth to democratic institutions: Evidence from over 40 years of sub-Sahara Africa's history |
| title_fullStr | The contributions of foreign aid and natural resource wealth to democratic institutions: Evidence from over 40 years of sub-Sahara Africa's history |
| title_full_unstemmed | The contributions of foreign aid and natural resource wealth to democratic institutions: Evidence from over 40 years of sub-Sahara Africa's history |
| title_short | The contributions of foreign aid and natural resource wealth to democratic institutions: Evidence from over 40 years of sub-Sahara Africa's history |
| title_sort | contributions of foreign aid and natural resource wealth to democratic institutions evidence from over 40 years of sub sahara africa s history |
| topic | C25 D70 F35 |
| url | http://www.sciencedirect.com/science/article/pii/S2667319324000363 |
| work_keys_str_mv | AT alexoacheampong thecontributionsofforeignaidandnaturalresourcewealthtodemocraticinstitutionsevidencefromover40yearsofsubsaharaafricashistory AT johntaden thecontributionsofforeignaidandnaturalresourcewealthtodemocraticinstitutionsevidencefromover40yearsofsubsaharaafricashistory AT alexoacheampong contributionsofforeignaidandnaturalresourcewealthtodemocraticinstitutionsevidencefromover40yearsofsubsaharaafricashistory AT johntaden contributionsofforeignaidandnaturalresourcewealthtodemocraticinstitutionsevidencefromover40yearsofsubsaharaafricashistory |