Economics of Covid-19 multilateral foreign aid

This paper provides an empirical study of the link between Covid-19 aid to developing countries by multilateral organizations and the level of democracy in the recipient countries. In particular, we test whether developing countries with lower level of democracy, using democratic political institutions as a proxy, receive more foreign aid. The policy implication of our econometric results may suggest that more democratic developing countries may have disadvantage in responding quickly to international donors for Covid-19 aid. We use a battery of economic, health, and other political variables as controls.