The effects of foreign aid on refugee flows
We investigate whether foreign aid affects refugee flows from recipient countries. Combining refugee data on 141 origin countries over the 1976-2013 period with bilateral Official Development Assistance data, we estimate the causal effects of a country’s aid receipts on both total refugee flows to t...
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| Main Authors: | , , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
2019
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| In: |
European economic review
Year: 2018, Volume: 112, Pages: 127-147 |
| ISSN: | 1873-572X |
| DOI: | 10.1016/j.euroecorev.2018.12.001 |
| Subjects: | |
| Online Access: | Resolving-System, Volltext: https://doi.org/10.1016/j.euroecorev.2018.12.001 Verlag, Volltext: http://www.sciencedirect.com/science/article/pii/S0014292118301958 
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| Author Notes: | Axel Dreher, Andreas Fuchs, Sarah Langlotz |
| Summary: | We investigate whether foreign aid affects refugee flows from recipient countries. Combining refugee data on 141 origin countries over the 1976-2013 period with bilateral Official Development Assistance data, we estimate the causal effects of a country’s aid receipts on both total refugee flows to the world and flows to donor countries. The interaction of donor-government fractionalization and a recipient country’s probability of receiving aid provides a powerful and excludable instrumental variable (IV) when we control for country- and time-fixed effects that capture the levels of the interacted variables. Though our IV results suggest that aid induces recipient governments to encourage the return of their citizens, we find no evidence that aid reduces worldwide refugee outflows or flows to donor countries in the short term. However, we observe long-run effects after four three-year periods, which appear to be driven by lagged positive effects of aid on growth. |
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| Item Description: | Available online 19 December 2018 Gesehen am 14.05.2019 Impact-Factor: 1.744 (Stand 2019) SJR Faktor ist 2.421 / Q1 Journal (Stand 2019) H-Index: 122 (Stand 2019) |
| Physical Description: | Online Resource |
| ISSN: | 1873-572X |
| DOI: | 10.1016/j.euroecorev.2018.12.001 |