Does Foreign Aid Improve Governance?

Matthias Busse and Steffen Groening

No 6, Proceedings of the German Development Economics Conference, Hannover 2010 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: This paper analyses the impact of aid flows on governance. Using an instrumental variable approach and a large country sample, we find that aid has a negative rather than a positive influence on governance. This outcome is robust to various model specifications.

Keywords: Official Development Assistance; Governance (search for similar items in EconPapers)
JEL-codes: C33 F35 O11 O43 (search for similar items in EconPapers)
Date: 2010
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Journal Article: Does foreign aid improve governance? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:gdec10:6

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