Corruption and Bilateral Aid

A Dyadic Approach

Bibliographic Data

ID6285124
AuthorsCarl Jan Willem Schudel (University of Essex, corresponding author)
Year2008
Volume52
Issue4
Pages507-526
Publication date2008-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Conflict Resolution (JOURNAL)
Journal identifiersISSN: 0022-0027 • E-ISSN: 1552-8766
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0022002708316646
OpenAlexW2167150548
LanguageEN
Citations received18
References cited31

Corruption in developing states reduces the effectiveness of foreign aid that is allocated to them, because government officials in corrupt countries use this money for private rather than public purposes. Despite this, existing studies do not find different aid policies from donor governments toward corrupt and less corrupt recipients. However, most of these studies have not taken account of variation among donor states. This is an important omission, because donor states behave differently. This article argues that the responsiveness of donor states to corruption in recipient states depends on their own level of corruption: less corrupt donor states allocate more aid to less corrupt recipient states than to corrupt recipients, whereas corrupt donor states do not make such a clear distinction. This proposition is tested by both pooled ordinary least squares and fixed effects estimations. The data support the argument that corruption levels in donor states determine their reaction to corruption in recipient states

Argument (complex analysis · Development economics · Econometrics · Economics · Government (linguistics · Language change · Ordinary least squares · Political economy · Political science · Proposition · Public economics · Corruption and Economic Development · Economic Growth and Development · International Development and Aid · Medicine

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