On the Effect of Foreign Aid on Corruption

Economics Bulletin, 32(3), pp. 2174-2180. (2012)

9 Pages Posted: 10 Sep 2014 Last revised: 1 Apr 2015

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Date Written: February 8, 2012

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.

Keywords: Foreign Aid; Political Economy; Development; Africa

JEL Classification: B20; F35; F50; O10; O55

Suggested Citation

Asongu, Simplice, On the Effect of Foreign Aid on Corruption (February 8, 2012). Economics Bulletin, 32(3), pp. 2174-2180. (2012). Available at SSRN: https://ssrn.com/abstract=2493289 or http://dx.doi.org/10.2139/ssrn.2493289

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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