?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F76%2F&rft.title=Easing+the+Pain+of+Adjustment%3F+Preferential+Trading+Agreements%2C+Foreign+Aid%2C+and+Credible+Commitment+to+Economic+Reform&rft.creator=Baccini%2C+Leonardo&rft.creator=Urpelainen%2C+Johannes&rft.subject=JA+Political+science+(General)&rft.description=In+this+article%2C+we+propose+that+wealthy+donors+give+foreign+aid+to+developing+countries+to%0D%0Afacilitate+political+adjustment%2C+such+as+compensation+for+losers+and+side+payments+to+influential%0D%0Aelite+constituencies%2C+towards+mutually+profitable+economic+reform.+Only+democratic+developing%0D%0Acountries+can+credibly+commit+to+using+fungible+revenue+in+ways+that+benefit+the+donor%2C%0D%0Aso+the+adjustment+effect+only+applies+to+democracies.+A+quantitative+test+against+data+on+preferential%0D%0Atrading+agreements+lends+strong+support+to+the+theory.+Strikingly%2C+fully+democratic%0D%0Adeveloping+countries+that+form+a+preferential+trading+agreement+obtain+a+threefold+increase+in%0D%0Aforeign+aid+in+the+short+run.+Additional+tests+show+that+this+increase+is+not+driven+by+macroeconomic%0D%0Adifficulties+and+that+the+beneficial+effect+on+foreign+aid+is+temporary.+Both+findings%0D%0Aare+consistent+with+the+theory.+An+important+implication+of+these+results+is+that+if+foreign+aid%0D%0Afacilitates+economic+reform+through+preferential+trading+agreements%2C+previous+research+could%0D%0Ahave+underestimated+the+benefits+thereof.&rft.date=2010&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=http%3A%2F%2Feprints.imtlucca.it%2F76%2F1%2Fbaccini_urp_2010b.pdf&rft.identifier=++Baccini%2C+Leonardo+and+Urpelainen%2C+Johannes++Easing+the+Pain+of+Adjustment%3F+Preferential+Trading+Agreements%2C+Foreign+Aid%2C+and+Credible+Commitment+to+Economic+Reform.++Working+Paper+++++++(Submitted)+++