Simplice A, Asongu (2012): On the effect of foreign aid on corruption.
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Abstract
The 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.
| Item Type: | MPRA Paper |
|---|---|
| Original Title: | On the effect of foreign aid on corruption |
| Language: | English |
| Keywords: | Foreign Aid; Political Economy; Development; Africa |
| Subjects: | F - International Economics > F3 - International Finance > F35 - Foreign Aid F - International Economics > F5 - International Relations, National Security, and International Political Economy > F50 - General O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B20 - General |
| Item ID: | 36545 |
| Depositing User: | Simplice Asongu |
| Date Deposited: | 09 Feb 2012 09:02 |
| Last Modified: | 27 Sep 2019 04:14 |
| References: | Blundell, R.W., & Bond, S.R., (1998), “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models”, Journal of Econometrics, 87, pp.115-143. Beck, T., Demirgüç-Kunt, A., & Levine, R.,(2003), “Law and finance: why does legal origin matter?”, Journal of Comparative Economics, 31, pp. 653-675. Billger, S.M., & Goel, R.K., (2009), “Do existing corruption levels matter in controlling corruption?cross-country quantile regression estimates”, Journal of Development Economics, 90, pp. 299–305. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R.W., (1997). “Legal Determinants of External Finance”, Journal of Finance, 52, pp. 1131-1150. Okada, K., & Samreth, S.,(2012), “The effect of foreign aid on corruption: A quantile regression approach”, Economic Letters, 11, pp.240-243. |
| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/36545 |
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