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Aid and Governance: Negative Returns?

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  • Samuel Brazys

    (University College Dublin, Dublin, Ireland.)

Abstract

Recent literature has come to little consensus on the impact of aid flows on governance in recipient countries. This article adds to the debate by developing a theoretical and empirical argument to help resolve the contradictory claims. The article suggests that the aid–governance relationship need not be linear, but rather, that aid may simultaneously improve and hinder governance. This relationship might be akin to an aid–governance ‘aid dependence’ Laffer curve wherein ‘too much’ aid can lead to counter-productive results. Inserting non-linear aid terms in established techniques for examining aid and governance reveals significant support for the potential of negative returns in aid and governance.

Suggested Citation

  • Samuel Brazys, 2016. "Aid and Governance: Negative Returns?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(2), pages 294-313, April.
    • Handle: RePEc:pal:eurjdr:v:28:y:2016:i:2:p:294-313
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    Cited by:

    1. Samuel Brazys & Krishna Chaitanya Vadlamannati, 2021. "Aid curse with Chinese characteristics? Chinese development flows and economic reforms," Public Choice, Springer, vol. 188(3), pages 407-430, September.
    2. Samuel Brazys & Johan A. Elkink & Gina Kelly, 2017. "Bad neighbors? How co-located Chinese and World Bank development projects impact local corruption in Tanzania," The Review of International Organizations, Springer, vol. 12(2), pages 227-253, June.
    3. Dijkstra, Geske, 2018. "Aid and good governance: Examining aggregate unintended effects of aid," Evaluation and Program Planning, Elsevier, vol. 68(C), pages 225-232.

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