Arbeitspapier

On foreign aid distortions to governance

The Kangoye (2013, TDE) findings on the negative nexus between foreign aid unpredictability and governance could seriously affect debates in academic and policy making circles. Using the theoretical underpinnings of the celebrated Eubank (2012, JDS) literature, we first confirm Kangoye's findings. Then extend the concept of governance from corruption to political, economic, institutional and general versions of the phenomenon. Findings from the extension run counter to those of Kangoye. It follows that in the presence of foreign aid uncertainty, governments could be constrained to improve governance standards in exchange for or anticipation of more dependence on local tax revenues. The empirical evidence is based on 53 African countries for the period 1996-2010. Two direct policy implications result. First, the Kangoye findings for developing countries are relevant for Africa. Second, when the concept of governance is not restricted to corruption, the findings become irrelevant for the continent.

Sprache
Englisch

Erschienen in
Series: AGDI Working Paper ; No. WP/14/003

Klassifikation
Wirtschaft
Forecasting Models; Simulation Methods
Foreign Aid
Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation: Models and Applications
Macroeconomic Analyses of Economic Development
Economywide Country Studies: Africa
Thema
Uncertainty
Foreign aid
Governance
Development
Africa

Ereignis
Geistige Schöpfung
(wer)
Asongu, Simplice A.
Ereignis
Veröffentlichung
(wer)
African Governance and Development Institute (AGDI)
(wo)
Yaoundé
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Asongu, Simplice A.
  • African Governance and Development Institute (AGDI)

Entstanden

  • 2014

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