Elite capture of foreign aid: evidence from offshore bank accounts
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 con...
| Main Authors: | , , |
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| Format: | Journal article |
| Language: | English |
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University of Chicago Press
2022
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| _version_ | 1811141202525814784 |
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| author | Andersen, JJ Johannesen, N Rijkers, B |
| author_facet | Andersen, JJ Johannesen, N Rijkers, B |
| author_sort | Andersen, JJ |
| collection | OXFORD |
| description | 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. |
| first_indexed | 2024-09-25T04:34:08Z |
| format | Journal article |
| id | oxford-uuid:d565b7be-100e-4ff6-ac3e-d57c7636c460 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-09-25T04:34:08Z |
| publishDate | 2022 |
| publisher | University of Chicago Press |
| record_format | dspace |
| spelling | oxford-uuid:d565b7be-100e-4ff6-ac3e-d57c7636c4602024-09-06T10:37:31ZElite capture of foreign aid: evidence from offshore bank accountsJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:d565b7be-100e-4ff6-ac3e-d57c7636c460EnglishSymplectic ElementsUniversity of Chicago Press2022Andersen, JJJohannesen, NRijkers, BDo 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. |
| spellingShingle | Andersen, JJ Johannesen, N Rijkers, B Elite capture of foreign aid: evidence from offshore bank accounts |
| title | Elite capture of foreign aid: evidence from offshore bank accounts |
| title_full | Elite capture of foreign aid: evidence from offshore bank accounts |
| title_fullStr | Elite capture of foreign aid: evidence from offshore bank accounts |
| title_full_unstemmed | Elite capture of foreign aid: evidence from offshore bank accounts |
| title_short | Elite capture of foreign aid: evidence from offshore bank accounts |
| title_sort | elite capture of foreign aid evidence from offshore bank accounts |
| work_keys_str_mv | AT andersenjj elitecaptureofforeignaidevidencefromoffshorebankaccounts AT johannesenn elitecaptureofforeignaidevidencefromoffshorebankaccounts AT rijkersb elitecaptureofforeignaidevidencefromoffshorebankaccounts |