Global Flow of Foreign Aid and Change in Recipients’ Local Labor Institutions

Table 2

Variable correlations and summary statistics.

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)	(13)	(14)	(15)
Panel A. Variable Correlations
(1) Actual_Aid_All	1.000
(2) Actual_Aid_Econ	0.198	1.000
(3) Predicted_Aid_Econ	0.045	0.163	1.000
(4) LaborInst or LI	0.054	0.038	−0.020	1.000
(5) HRMW_LI	0.029	0.017	−0.017	0.667	1.000
(6) HFR_LI	0.008	0.015	−0.030	0.499	0.348	1.000
(7) CCB_LI	0.019	0.026	−0.029	0.497	0.254	0.523	1.000
(8) HR_LI	0.043	0.023	−0.007	0.556	0.403	0.286	0.211	1.000
(9) MCWD_LI	0.030	0.014	−0.010	0.401	0.078	0.222	0.102	0.004	1.000
(10) CONS_LI	0.043	0.029	0.001	0.649	0.200	−0.054	0.071	0.185	−0.029	1.000
(11) LN_GDP	0.241	0.073	0.078	−0.014	0.096	−0.109	−0.053	0.132	−0.109	−0.039	1.000
(12) LN_GDPC	0.183	0.052	0.046	0.143	0.167	0.001	−0.102	0.006	0.153	0.077	0.350	1.000
(13) Trade	−0.044	−0.027	−0.028	0.146	0.086	0.146	0.098	−0.039	0.125	0.063	−0.262	0.338	1.000
(14) LifeExp	0.158	0.029	0.034	0.058	0.047	−0.008	−0.001	0.045	0.087	−0.027	0.353	0.746	0.228	1.000
(15) Urban	0.134	0.046	0.035	0.072	0.094	0.000	0.025	−0.053	0.122	−0.011	0.307	0.777	0.214	0.593	1.000
Panel B. Summary Statistics
Mean	0.0791	0.0043	0.0082	0.1564	0.1908	−0.2297	−0.2291	−0.2230	0.5325	0.1441	0.9529	1.4337	0.0763	1.0156	0.7443
Median	0.0000	0.0000	0.0000	0.1444	0.1565	−0.2990	−0.1655	0.0000	0.4662	0.0000	0.9975	1.4757	0.0954	0.7864	0.7784
Min	0.0000	0.0000	−2.0278	−3.1532	−2.1547	−3.1663	−3.0873	−3.0147	−2.1710	−1.6293	−2.4601	−2.3989	−6.2240	−2.5633	−2.5918
	0.0000	0.0000	0.0000	−0.5301	−0.4604	−0.9430	−0.9803	−0.7537	−0.1055	−0.1629	0.3312	0.7970	−0.4271	0.3483	0.0981
	0.0043	0.0000	0.0000	0.8377	0.9116	0.4250	0.4654	0.4899	1.2588	0.8147	1.5802	2.1239	0.6511	1.7783	1.4335
Max	22.8677	3.8409	5.8126	3.3730	2.7624	3.9156	4.0800	2.3838	2.5145	1.6293	3.8883	3.9264	4.8556	3.9883	3.1834
Std. Dev.	0.4513	0.0543	0.0900	0.9865	1.0073	1.0071	1.0076	1.0085	0.9789	0.9444	0.9178	0.9688	1.1317	1.0227	0.9359

Notes: Panel A shows correlation coefficients for 15 variables constructed based on raw data from the World Bank Doing Business, Economic Freedom of the World, AidData, and the International Disasters Database. Actual_Aid_All is the actual bilateral aid flow aggregated for all purposes divided by the recipient’s GDP. Actual_Aid_Econ and Predicted_Aid_Econ are the actual amounts and the predicted bilateral aid flow with economic growth purposes divided by the recipient’s GDP, respectively. LaborInst is the score of overall labor institutions in distance measures and definitions for all other sub-indicators are summarized in Table 1. LN_GDP is the natural log of GDP evaluated at 2010 constant dollars, LN_GDPC is the natural log of GDP per capita evaluated at 2010 constant dollars, Trade is the overall trade openness divided by GDP, LifeExp is life expectancy, Urban is urban population as a percentage of the total population, ND is the natural log of 1 plus the number of occurrences of natural disasters, and TD is the natural log of 1 plus the number of deaths caused by technological disasters. Panel B reports the summary statistics for all variables. The sample period spans from 1980 to 2013. ^∗∗∗, ^∗∗, and ^∗ denote significance at 1%, 5%, and 10%.