Does Foreign Aid Corrupt?

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type 01 Jan 2001 English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

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Authors: José Tavares;

doi: 10.2139/ssrn.284533 , 10.1016/s0165-1765(02)00293-8

Does Foreign Aid Corrupt?

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Abstract

We estimate the impact of foreign aid on corruption using geographical and cultural distance to the donor countries as instrumental variables to assess causality. Aid decreases corruption. Our results are statistically and economically significant and robust to different controls.

Related Organizations

Economic Policy Institute
United States
Centre for Economic Policy Research
United Kingdom
Universidade Nova de Lisboa
Portugal

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