Does foreign aid corrupt?

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154 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)99-106
Number of pages8
JournalEconomics Letters
Volume79
Issue number1
DOIs
Publication statusPublished - 1 Apr 2003

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Keywords

  • Corruption
  • Instrumental variables
  • International aid

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