Understanding the link between aid and corruption: A causality analysis

Audrey-Rose Menard and Laurent Weill

Economic Systems, 2016, vol. 40, issue 2, 260-272

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.

Keywords: Aid; Corruption; Granger causality (search for similar items in EconPapers)
JEL-codes: F35 K4 O17 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:40:y:2016:i:2:p:260-272

DOI: 10.1016/j.ecosys.2016.01.001

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