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International aid, corruption and fiscal policy behavior

Author

Listed:
  • Asongu Simplice

    () (Yaoundé/Cameroun)

  • Jellal Mohamed

    () (Al Makrîzi Institut d\\\'Economie, Rabat, M)

Abstract

The Okada & Samreth (2012, EL) and Asongu (2012, EB; 2013, EEL) debate on ‘the effect of foreign aid on corruption’ has had an important influence in policy and academic circles. This paper provides a unifying framework by using investment and fiscal behavior transmission channels in 53 African countries for the period 1996-2010. Findings unite the two streams of the debate and broadly suggest that while the ‘government’s final consumption expenditure’ channel is consistent with the latter author, the investment and tax effort channels are in line with the former authors. Justifications for the nexuses are provided. Policy implications on how to use foreign aid constraints in managing fiscal behavior as means of reducing (increasing) corruption (corruption-control) are discussed.

Suggested Citation

  • Asongu Simplice & Jellal Mohamed, 2014. "International aid, corruption and fiscal policy behavior," Working Papers 14/007, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:14/007
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Asongu, Simplice & Jellal, Mohamed, 2014. "Foreign aid, investment and fiscal policy behavior: theory and empirical evidence," MPRA Paper 64460, University Library of Munich, Germany.

    More about this item

    Keywords

    Foreign Aid; Political Economy; Development; Africa;

    JEL classification:

    • 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, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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