Title: The effects of foreign aid on refugee flows
Authors: Dreher, Axel
Fuchs, Andreas 
Langlotz, Sarah
Language: eng
Keywords: Universitätsbibliographie;Evaluation 2019
Issue Date: 2019
Publisher: Elsevier
Document Type: Article
Source: Enthalten in: European economic review. - Amsterdam : Elsevier, 1969. - Online-Ressource. - Bd. 112.2019, Seite 127-147, insges. 21 S.
Journal / Series / Working Paper (HSU): European economic review
Volume: 112
Page Start: 127
Page End: 147
Publisher Place: Amsterdam
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 countrys aid receipts on both total refugee flows to the world and flows to donor countries. The interaction of donor-government fractionalization and a recipient countrys 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.
Organization Units (connected with the publication): Umwelt-, Klima- und Entwicklungsökonomik 
Publisher DOI: 10.1016/j.euroecorev.2018.12.001
Appears in Collections:2019

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