Foreign aid and governance in Africa

  title={Foreign aid and governance in Africa},
  author={Simplice Anutechia Asongu and Jacinta C. Nwachukwu},
  journal={International Review of Applied Economics},
  pages={69 - 88}
Abstract This paper investigates the effect of foreign aid on governance in order to extend the debate on foreign aid and to verify common positions from Moyo’s ‘Dead Aid’, Collier’s ‘Bottom Billion’ and Eubank’s ‘Somaliland’. The empirical evidence is based on updated data from 52 African countries for the period 1996–2010. An endogeneity robust instrumental variable Two-Stage-Least Squares empirical strategy is employed. The findings reveal that development assistance deteriorates economic… 
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