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Faith and Foreign Aid
Unformatted Document Text:  Faith and Foreign Aid Joshua Loud Brigham Young University Christopher O’Keefe Brigham Young University Abstract: In this paper we study the effects of religion – specifically Islam – on the targeting of foreign aid. The vast majority of foreign aid originates in the West, where apprehension toward the Muslim world increases simultaneously with greater interactions and interdependence. This phenomenon is particularly acute in Europe, with its Muslim population of over 14 million. Additionally, fears of terrorism continue to rise; for Europeans, Islamic fundamentalists live not in distant countries but next door. Finally, with Turkey as the largest European-Union candidate country, aid should disproportionately flow there. We argue that these factors should have led to greater foreign-aid targeting of Islamic countries, controlling for other variables traditionally considered to be driving foreign aid donations. To estimate the religious selectivity of foreign aid, we employ a Prais-Winsten model on data from the new Project Level Aid database, which includes more than 500,000 development projects from 1970 to 2000. Among other conventional controls, we control for oil exports and use multiple measures of “Islamic-ness.”. These findings will be important to learning how non-traditional recipient characteristics drive the allocation of foreign aid.

Authors: Loud, Joshua. and O' Keefe, Christopher.
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Faith and Foreign Aid
Joshua Loud
Brigham Young University
Christopher O’Keefe
Brigham Young University
Abstract:
In this paper we study the effects of religion – specifically Islam – on the targeting of foreign
aid. The vast majority of foreign aid originates in the West, where apprehension toward the
Muslim world increases simultaneously with greater interactions and interdependence. This
phenomenon is particularly acute in Europe, with its Muslim population of over 14 million.
Additionally, fears of terrorism continue to rise; for Europeans, Islamic fundamentalists live not
in distant countries but next door. Finally, with Turkey as the largest European-Union candidate
country, aid should disproportionately flow there. We argue that these factors should have led to
greater foreign-aid targeting of Islamic countries, controlling for other variables traditionally
considered to be driving foreign aid donations. To estimate the religious selectivity of foreign
aid, we employ a Prais-Winsten model on data from the new Project Level Aid database, which
includes more than 500,000 development projects from 1970 to 2000. Among other
conventional controls, we control for oil exports and use multiple measures of “Islamic-ness.”.
These findings will be important to learning how non-traditional recipient characteristics drive
the allocation of foreign aid.


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