Does Foreign Aid Corrupt?

16 Pages Posted: 27 Sep 2001

See all articles by José Tavares

José Tavares

Nova School of Business and Economics - Universidade Nova de Lisboa ; Centre for Economic Policy Research (CEPR)

Date Written: September 2001

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.

Keywords: International Aid, Corruption, Instrumental Variables

JEL Classification: F35, E62, H10

Suggested Citation

Tavares, José, Does Foreign Aid Corrupt? (September 2001). Available at SSRN: https://ssrn.com/abstract=284533 or http://dx.doi.org/10.2139/ssrn.284533

José Tavares (Contact Author)

Nova School of Business and Economics - Universidade Nova de Lisboa ( email )

Campus de Carcavelos
Rua da Holanda, 1
Lisboa, 2775-405
Portugal
+351 21 380 1669 (Phone)
+351 21 388 9073 (Fax)

HOME PAGE: http://josetavares.pt

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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