CORRUPTION AND INTERNATIONAL AID ALLOCATION: A COMPLEX DANCE
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This paper studies the relationship between donor governments’ Official Development Assistance (ODA) decisions and corruption in recipient countries over the period 1999-2010. Previous studies found that donors do not penalize recipients on the basis of corruption. Using a rich panel data set, this paper estimates the effect of corruption on aid using donor-recipient fixed effects and disaggregating aid into sectors which may vary in sensitivity to corruption. Overall, there is a moderately significant, negative effect of corruption on aid. This relationship varies across sectors - corrupt recipients receive more humanitarian assistance and less production sector and social infrastructure aid.
Abstract
This paper studies the relationship between donor governments’ Official Development Assistance (ODA) decisions and corruption in recipient countries over the period 1999-2010. Previous studies found that donors do not penalize recipients on the basis of corruption. Using a rich panel data set, this paper estimates the effect of corruption on aid using donor-recipient fixed effects and disaggregating aid into sectors which may vary in sensitivity to corruption. Overall, there is a moderately significant, negative effect of corruption on aid. This relationship varies across sectors - corrupt recipients receive more humanitarian assistance and less production sector and social infrastructure aid.
참고문헌 (21)
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