Theses and Dissertations

Issuing Body

Mississippi State University

Advisor

Blair, Benjamin F.

Committee Member

Campbell, Randy

Committee Member

Campbell, Charles

Committee Member

Grimes, Paul W.

Committee Member

Rezek, Jon

Other Advisors or Committee Members

Taylor, Walter N.

Date of Degree

8-9-2008

Document Type

Dissertation - Open Access

Major

Applied Economics

Degree Name

Doctor of Philosophy (Ph.D)

College

College of Business and Industry

College

College of Business

Department

Department of Finance and Economics

Department

College of Agriculture and Life Sciences

Abstract

Three studies on foreign aid, rent-seeking, and economic growth in sub-Saharan Africa are presented. The first study examines the possible simultaneity that may exist between a donor’s provision of aid and the rentseeking (corruption) activities in the recipient country. Does the amount of aid depend on the lack of corruption in a country? Simultaneously, does the level of corruption depend on the amount of aid and the type of donor? The main goals of this paper are to examine whether such simultaneity exists and whether the impact of aid depends on the type of the donor, either multilateral or bilateral. The second study extends the first model by incorporating an additional equation for GDP per capita. It examines whether simultaneity exists between the three variables: foreign aid, corruption, and GDP per capita and whether the relationship depends upon the source of the foreign aid. Adding GDP per capita as an endogenous variable will provide another key to understanding the lack of long-term effectiveness for foreign aid in sub-Saharan Africa. The third and final study uses a fixed effects model to examine the relationship between foreign aid and the level of corruption in sub-Saharan Africa. Accounting for fixed effects allows me to examine whether unobserved characteristics of recipient countries play a role in explaining the impact of aid on corruption.

URI

https://hdl.handle.net/11668/19405

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