Wednesday, February 27, 2008

I vant to be a Loan

Development Aid and International Politics: Does membership on the UN
Security Council influence World Bank decisions?

Axel Dreher, Jan-Egbert Sturm & James Raymond Vreeland
Journal of Development Economics, forthcoming

We investigate whether elected members of the UN Security Council receive
favorable treatment from the World Bank, using panel data for 157 countries
over the period 1970-2004. Our results indicate a robust positive
relationship between temporary UN Security Council membership and the number
of World Bank projects a country receives, even after accounting for
economic and political factors, as well as regional, country and year
effects. The size of World Bank loans, however, is not affected by UN
Security Council membership.

(Nod to KL)