Aiding and Abetting: An Empoirical Study of the Effects of Foreign Aid on the Rule of Law in sub-Saharan Africa
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Authors
Pusateri, Nicholas
Issue Date
2014-04
Type
Thesis
Language
en_US
Keywords
Economics , Foreign aid , Rule of law , Sub-Saharan Africa , Africa , Econometrics , Instrumental Variable Analysis
Alternative Title
Abstract
Bringing the empirical analysis of econometrics to the debate of the effects of foreign aid on countries located in sub-Saharan Africa, this paper analyzes the effect of foreign aid on the rule of law by using instrumental variable analysis. Using a random effects model, and instrumenting for foreign aid with an innovative instrument, the percentage of the population living with HIV, this paper found that foreign aid has a significant, negative impact on the rule of law: roughly 1/6 a standard deviation Ceteris Paribus. This paper not only provides support for a reduction of foreign aid, it introduces and justifies a new instrument that can be used in further study of the region.
Description
Citation
Publisher
University of the South