Investigating the Association between Political Corruption in Recipient Countries (CPI Score) and U.S. Foreign Aid Program 2012-2017

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2018-12

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Abstract

This paper aims to explore the negative effects of US foreign aid program on the quality of governance in recipient countries between 2012 to 2017. We hypothesized that as the governments of the recipient countries are in charge of fund allocation, the funds donated by other countries are not likely to be used in an appropriate way and provide the chance of political corruption because high volume of foreign aid provide a good money resource for recipient countries which leads to less need for tax revenues. Thus the responsiveness of the government will decrease and political corruption will be promoted in recipient coun- tries. Using data from 24 countries shows that the there is a negative relationship between Corruption Perception Index and foreign aid in recipient countries between 2012 to 2017.

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Keywords

Corruption, Foreign aid, Political corruption responsiveness, Politics

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