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International aid, corruption and fiscal policy behavior

Simplice Asongu () and Mohamed Jellal ()

No 14_019, AAYE Policy Research Working Paper Series from Association of African Young Economists

Abstract: The Okada & Samreth (2012, EL) and Asongu (2012, EB; 2013, EEL) debate on ‘the effect of foreign aid on corruption’ has had an important influence in policy and academic circles. This paper provides a unifying framework by using investment and fiscal behavior transmission channels in 53 African countries for the period 1996-2010. Findings unite the two streams of the debate and broadly suggest that while the ‘government’s final consumption expenditure’ channel is consistent with the latter author, the investment and tax effort channels are in line with the former authors. Justifications for the nexuses are provided. Policy implications on how to use foreign aid constraints in managing fiscal behavior as means of reducing (increasing) corruption (corruption-control) are discussed.

Keywords: Foreign Aid; Political Economy; Development; Africa (search for similar items in EconPapers)
JEL-codes: B20 F35 F50 O10 O55 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2014-07, Revised 2014-09
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http://aaye.org/dmdocuments/AAYE_PR_WPS_N19.pdf (application/pdf)

Related works:
Working Paper: International aid, corruption and fiscal policy behavior (2014) Downloads
Working Paper: International aid, corruption and fiscal policy behavior (2014) Downloads
Working Paper: International aid, corruption and fiscal policy behavior (2014) Downloads
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