On the effect of foreign aid on corruption
AbstractThe Okada & Samreth(2012, EL) finding that aid deters corruption could have an important influence on policy and academic debates. This paper partially negates their criticism of the mainstream approach to the aid-development nexus. Using updated data(1996-2010) from 52 African countries we provide robust evidence of a positive aid-corruption nexus. Development assistance fuels(mitigates) corruption(the control of corruption) in the African continent. As a policy implication, the Okada & Samreth(2012, EL) finding for developing countries may not be relevant for Africa.
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Bibliographic InfoPaper provided by African Governance and Development Institute. in its series Working Papers with number 12/031.
Date of creation: 09 Feb 2012
Date of revision:
Publication status: Published in Economics Bulletin
Foreign Aid; Political Economy; Development; Africa;
Other versions of this item:
- B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
- F35 - International Economics - - International Finance - - - Foreign Aid
- F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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- Okada, Keisuke & Samreth, Sovannroeun, 2012.
"The effect of foreign aid on corruption: A quantile regression approach,"
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- Okada, Keisuke & Samreth, Sovannroeun, 2011. "The effect of foreign aid on corruption: A quantile regression approach," MPRA Paper 27969, University Library of Munich, Germany.
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- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Billger, Sherrilyn M. & Goel, Rajeev K., 2009. "Do existing corruption levels matter in controlling corruption?: Cross-country quantile regression estimates," Journal of Development Economics, Elsevier, vol. 90(2), pages 299-305, November.
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