IDEAS home Printed from https://ideas.repec.org/a/eme/jfcpps/jfc-08-2018-0089.html
   My bibliography  Save this article

The relationship between foreign aid and corruption: a case of selected Asian countries

Author

Listed:
  • Muhammad Ali
  • Lubna Khan
  • Amna Sohail
  • Chin Hong Puah

Abstract

Purpose - The purpose of this study is to examine the effect of foreign aid (FA) on corruption in selected Asian countries (Pakistan, India, Srilanka and Bangladesh) using the panel data from 2000 to 2014. Design/methodology/approach - The author used Levin-Lin-Chu and Im-Pesaran-Shin panel unit root tests to check the stationary properties of the variables. The Pedroni’s and Kao panel cointegration approach was applied to analyze the variable’s long-run relationship. The author used panel dynamic ordinary least squares (PDOLS) and fully modified ordinary least squares (FMOLS) framework to estimate the coefficients of cointegrating vectors. Additionally, the panel granger causality test was performed to check the causal relationship between the variables. Findings - The results from PDOLS and FMOLS indicate that FA has a significant negative impact on the level of corruption. This infers that the foreign assistance decrease the level of corruption perception index, hence, more corruption in the country. Originality/value - Overall, the study fulfills the need to understand the aid-corruption nexus, particularly in the case of the Asian region.

Suggested Citation

  • Muhammad Ali & Lubna Khan & Amna Sohail & Chin Hong Puah, 2019. "The relationship between foreign aid and corruption: a case of selected Asian countries," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 26(3), pages 692-704, July.
    • Handle: RePEc:eme:jfcpps:jfc-08-2018-0089
    DOI: 10.1108/JFC-08-2018-0089
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2018-0089/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JFC-08-2018-0089/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JFC-08-2018-0089?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jfcpps:jfc-08-2018-0089. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.