Article ID Journal Published Year Pages File Type
5056306 Economic Systems 2016 34 Pages PDF
Abstract
This paper addresses the direction of the causal link between aid and corruption. We perform Granger causality tests in a dynamic GMM panel framework to evaluate the sign and direction of causality between aid and corruption on a dataset of 71 developing countries over the period 1996-2009. We find no significant causal relation between aid and corruption running in either direction. Our results are robust to various controls.
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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Understanding the link between aid and corruption: A causality analysis
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