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Examining Foreign Aid as a Retaliatory Mechanism: Insights from Recent Research

This seminar presentation explores the concept of foreign aid as a tool for retaliation among states, drawing on existing literature and empirical data. We hypothesize that powerful states utilize foreign aid to influence World Trade Organization (WTO) outcomes, particularly through strategic control of filings. Our research employs various methodological approaches, including lagging and leading data indicators, to assess the impact of these choices on significance and results. The findings provide valuable insights into how methodological decisions shape our understanding of foreign aid dynamics.

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Examining Foreign Aid as a Retaliatory Mechanism: Insights from Recent Research

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  1. Krogh Seminar – Research Presentation Zach Kay, Matthew Quallen

  2. Foreign aid as a retaliatory mechanism? Research Question

  3. Retaliation in the Literature (Davis, Bermeo) 15-20% of Cases • “Power Hypothesis” (Guzman, Simmons) Strong states muscle out weaker ones Background

  4. We hypothesize states will use aid to control WTO outcomes, filings Hypothesis

  5. Our Data – -dichotomous indicators -Vreeland et. Al • Independent variable Lagging and leading versions • Dependent variable Odadis_USA, Ln? Delta? • Controls Baseline from Vreeland et. al; Population? Ln? Methodology

  6. Natural Log Raw Data Oadis_USA, to Ln or not to Ln? *What effect will this have on our results?

  7. The effects of methodological choices on out outcomes -Population, ln? -Odadis_USA, ln? -Odadis_USA, delta? -Leading and lagging effects? Results

  8. Results Summary

  9. Methodology affects both significance and sign • Evaluating our hypothesis? Conclusions

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