Do Corrupt Governments Receive Less Foreign Aid?

42 Pages Posted: 29 Sep 1999 Last revised: 5 Jun 2022

See all articles by Alberto F. Alesina

Alberto F. Alesina

Harvard University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Beatrice Weder di Mauro

Graduate Institute Geneva, IHEID; Graduate Institute Geneva, IHEID

Date Written: May 1999

Abstract

Critics of foreign aid programs argue that these funds often support corrupt governments and inefficient bureaucracies. Supporters argue that foreign aid can be used to reward good governments. This paper documents that there is no evidence that less corrupt governments receive more foreign aid. On the contrary, according to some measures of corruption, more corrupt governments receive more aid. Also, we could not find any evidence that an increase in foreign aid reduces corruption. In summary, the answer to the question posed in the title is 'no.'

Suggested Citation

Alesina, Alberto F. and Weder di Mauro, Beatrice and Weder di Mauro, Beatrice, Do Corrupt Governments Receive Less Foreign Aid? (May 1999). NBER Working Paper No. w7108, Available at SSRN: https://ssrn.com/abstract=165098

Alberto F. Alesina (Contact Author)

Harvard University - Department of Economics ( email )

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Centre for Economic Policy Research (CEPR)

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National Bureau of Economic Research (NBER)

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Beatrice Weder di Mauro

Graduate Institute Geneva, IHEID ( email )

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Graduate Institute Geneva, IHEID ( email )

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Switzerland

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