Journal article
Elite capture of foreign aid: evidence from offshore bank accounts
- Abstract:
- Do elites capture foreign aid? This paper documents that aid disbursements to highly aid-dependent countries coincide with sharp increases in bank deposits in offshore financial centers known for bank secrecy and private wealth management but not in other financial centers. The estimates are not confounded by contemporaneous shocks—such as civil conflicts, natural disasters, and financial crises—and are robust to instrumenting using predetermined aid commitments. The implied leakage rate is around 7.5% at the sample mean and tends to increase with the ratio of aid to GDP. The findings are consistent with aid capture in the most aid-dependent countries.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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(Preview, Version of record, pdf, 2.1MB, Terms of use)
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- Publisher copy:
- 10.1086/717455
Authors
- Publisher:
- University of Chicago Press
- Journal:
- Journal of Political Economy More from this journal
- Volume:
- 130
- Issue:
- 2
- Pages:
- 388-425
- Publication date:
- 2022-01-05
- DOI:
- EISSN:
-
1537-534X
- ISSN:
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0022-3808
- Language:
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English
- Pubs id:
-
1931649
- Local pid:
-
pubs:1931649
- Deposit date:
-
2024-09-04
Terms of use
- Copyright holder:
- University of Chicago
- Copyright date:
- 2022
- Rights statement:
- © 2022 The University of Chicago. All rights reserved. Published by The University of Chicago Press.
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