On the dynamic effects of foreign aid on corruption

MPRA Paper from University Library of Munich, Germany

Abstract: We assemble more pieces on the puzzle of the aid-corruption nexus. In essence, we extend the debate on the effect of foreign aid on corruption by providing evidence on dynamic effects of wealth, legal origin, religious-domination, regional proximity, openness to sea, natural resources and politico-economic stability. The empirical evidence from dynamic panel GMM estimation is based on 53 African countries for the period 1996-2010. The findings show that the positive effect of foreign aid on corruption is most significant in: Middle-income, French civil-law, Christian-dominated, non-oil exporting and landlocked countries. Moreover, there is also some scanty evidence of foreign aid increasing corruption-control in Lower Middle income and Not-landlocked countries. Justifications for the dynamics are discussed.

Keywords: Foreign Aid; Political Economy; Development; Africa (search for similar items in EconPapers)
JEL-codes: B20 F35 F50 O10 O55 (search for similar items in EconPapers)
Date: 2015-01
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Citations: View citations in EconPapers (1)

Published in European Economics Letters 5.1(2015): pp. 1-5

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Related works:
Journal Article: On the dynamic effects of foreign aid on corruption (2015)
Working Paper: On the dynamic effects of foreign aid on corruption (2015)
Working Paper: On the dynamic effects of foreign aid on corruption (2015)
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