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Social and Behavioral Sciences Commons

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2013

University of Kentucky

Economic Development

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Full-Text Articles in Social and Behavioral Sciences

A Study Of Corruption, Foreign Aid, And Economic Growth, Amanda Deerfield Jan 2013

A Study Of Corruption, Foreign Aid, And Economic Growth, Amanda Deerfield

Theses and Dissertations--Public Policy and Administration

Foreign aid donors increasingly demand that aid is used efficiently and effectively. This study examines the effect of corruption levels, measured by the Corruption Perceptions Index, within a recipient country on the levels of economic growth. A growing literature outlines the mechanisms through which corruption impedes economic growth and is summarized within. Additionally, as longevity gains may result from foreign aid but are not captured in economic growth, this study computes a variable called the Life Quality Indicator (LQI) that combines such gains with economic growth and examines corruption’s effect on LQI growth. As any windfall, foreign aid has ...