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 University Library of Munich, Germany in its series MPRA Paper with number 36545.
Date of creation: 09 Feb 2012
Date of revision:
Foreign Aid; Political Economy; Development; Africa;
Other versions of this item:
- F35 - International Economics - - International Finance - - - Foreign Aid
- F50 - International Economics - - International Relations and International Political Economy - - - General
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
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