The Infona portal uses cookies, i.e. strings of text saved by a browser on the user's device. The portal can access those files and use them to remember the user's data, such as their chosen settings (screen view, interface language, etc.), or their login data. By using the Infona portal the user accepts automatic saving and using this information for portal operation purposes. More information on the subject can be found in the Privacy Policy and Terms of Service. By closing this window the user confirms that they have read the information on cookie usage, and they accept the privacy policy and the way cookies are used by the portal. You can change the cookie settings in your browser.
Using bilateral aid data from 47 donors to 194 recipients, we find that while donors reward good relationship with more foreign aid, recipients sweeten their political relations with donors only after aid cuts. The negative impact of aid on political relations is more pronounced after the Cold War, in politically stable regions, and in countries where China and the United States are both donors. We...