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The political economy of US aid to Pakistan


Michaelowa, K (2006). The political economy of US aid to Pakistan. Review of Development Economics, 10(2):195-209.

Abstract

Variations of bilateral aid flows are difficult to explain on the basis of official development objectives or recipient need. Based on the example of US aid to Pakistan, this paper suggests alternative political economic explanations, notably the relevance of ethnic lobbying and the relevance of US business interests. Time series regressions for the period from 1980 to 2002 and logistic regressions based on votes for the Pressler and the Brown Amendment confirm the significance of these political economic determinants. While in case of the Pressler Amendment, the direct influence of population groups of Indian and Pakistani origins seems to have played a predominant role, the role of ethnic business lobbies appears to have dominated in the context of the Brown Amendment. Time series analysis also provides some evidence for the impact of US business interests based on FDI and exports, but these effects appear to be comparatively small.

Variations of bilateral aid flows are difficult to explain on the basis of official development objectives or recipient need. Based on the example of US aid to Pakistan, this paper suggests alternative political economic explanations, notably the relevance of ethnic lobbying and the relevance of US business interests. Time series regressions for the period from 1980 to 2002 and logistic regressions based on votes for the Pressler and the Brown Amendment confirm the significance of these political economic determinants. While in case of the Pressler Amendment, the direct influence of population groups of Indian and Pakistani origins seems to have played a predominant role, the role of ethnic business lobbies appears to have dominated in the context of the Brown Amendment. Time series analysis also provides some evidence for the impact of US business interests based on FDI and exports, but these effects appear to be comparatively small.

Citations

5 citations in Web of Science®
10 citations in Scopus®
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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:08 University Research Priority Programs > Asia and Europe
06 Faculty of Arts > Institute of Political Science
Dewey Decimal Classification:320 Political science
950 History of Asia
180 Ancient, medieval & eastern philosophy
Language:English
Date:2006
Deposited On:03 Nov 2010 16:04
Last Modified:05 Apr 2016 14:14
Publisher:Wiley-Blackwell
ISSN:1363-6669
Publisher DOI:10.1111/j.1467-9361.2006.00312.x

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