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Corruption, foreign aid and welfare to the poor

Author

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  • Manmohan Agarwal
  • Bharat Hazari
  • Li Xindun

Abstract

This paper investigates the impact of foreign aid and corruption on the welfare of different classes in an economy that receives aid and uses it to finance a public good. We use a general equilibrium model that consists of three goods and three income classes to derive our results. The most important result we obtain is to show that under certain conditions, aid and corruption immiserize the poor.

Suggested Citation

  • Manmohan Agarwal & Bharat Hazari & Li Xindun, 2010. "Corruption, foreign aid and welfare to the poor," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(4), pages 305-312.
    • Handle: RePEc:taf:jecprf:v:13:y:2010:i:4:p:305-312
    DOI: 10.1080/17487870.2010.523956
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    Cited by:

    1. Qiaoqiao Liu & Zenggang Li, 2022. "Aid instability, aid effectiveness and economic growth," Development Policy Review, Overseas Development Institute, vol. 40(1), January.

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