Elite Capture of Foreign Aid : Evidence from Offshore Bank Accounts

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...

Full description

Bibliographic Details
Main Authors: Andersen, Jorgen Juel, Johannesen, Niels, Rijkers, Bob
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
ELITE CAPTURE
POLITICAL ECONOMY
FOREIGN AID
CORRUPTION
LEAKAGE RATE
Online Access:http://documents.worldbank.org/curated/en/493201582052636710/Elite-Capture-of-Foreign-Aid-Evidence-from-Offshore-Bank-Accounts
http://hdl.handle.net/10986/33355
id okr-10986-33355
recordtype oai_dc
spelling okr-10986-333552022-09-20T00:11:29Z Elite Capture of Foreign Aid : Evidence from Offshore Bank Accounts Andersen, Jorgen Juel Johannesen, Niels Rijkers, Bob ELITE CAPTURE POLITICAL ECONOMY FOREIGN AID CORRUPTION LEAKAGE RATE 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 with predetermined aid commitments. The implied leakage rate is around 7.5 percent 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. 2020-02-20T16:11:34Z 2020-02-20T16:11:34Z 2020-02 Working Paper http://documents.worldbank.org/curated/en/493201582052636710/Elite-Capture-of-Foreign-Aid-Evidence-from-Offshore-Bank-Accounts http://hdl.handle.net/10986/33355 English Policy Research Working Paper;No. 9150 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ELITE CAPTURE
POLITICAL ECONOMY
FOREIGN AID
CORRUPTION
LEAKAGE RATE
spellingShingle ELITE CAPTURE
POLITICAL ECONOMY
FOREIGN AID
CORRUPTION
LEAKAGE RATE
Andersen, Jorgen Juel
Johannesen, Niels
Rijkers, Bob
Elite Capture of Foreign Aid : Evidence from Offshore Bank Accounts
relation Policy Research Working Paper;No. 9150
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 with predetermined aid commitments. The implied leakage rate is around 7.5 percent 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.
format Working Paper
author Andersen, Jorgen Juel
Johannesen, Niels
Rijkers, Bob
author_facet Andersen, Jorgen Juel
Johannesen, Niels
Rijkers, Bob
author_sort Andersen, Jorgen Juel
title Elite Capture of Foreign Aid : Evidence from Offshore Bank Accounts
title_short 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_sort elite capture of foreign aid : evidence from offshore bank accounts
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/493201582052636710/Elite-Capture-of-Foreign-Aid-Evidence-from-Offshore-Bank-Accounts
http://hdl.handle.net/10986/33355
_version_ 1764478553683918848

Similar Items