The effect of foreign aid on corruption: A quantile regression approach

This paper investigates the effect of foreign aid on corruption using a quantile regression method. We show that foreign aid generally reduces corruption, and its reduction effect is greater in less corrupt countries. Moreover, this effect is different by different donor countries.

► We examine the effect of foreign aid on corruption using a quantile regression method. ► Foreign aid generally decreases corruption. ► The reduction effect is larger in less corrupt countries. ► The effect of foreign aid on corruption is different by different donor countries.