Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model

Considering the dismal growth performance in many African countries despite the huge transfer of resources as foreign aid or development assistance (DA) by various multilateral development and financial institutions like OECD, USAID and Islamic Development Bank (IDB) among others; it was not surpris...

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Main Authors:	Mustafa, Daud, Adewale, Abideen Adeyemi, Abdul Razak, Nor Azam
Format:	Article
Language:	English
Published:	Technology Institute of Dadaab 2013
Subjects:	HC Economic History and Conditions
Online Access:	http://irep.iium.edu.my/46585/ http://irep.iium.edu.my/46585/ http://irep.iium.edu.my/46585/1/46585.pdf

id	iium-46585
recordtype	eprints
spelling	iium-465852016-07-18T02:02:29Z http://irep.iium.edu.my/46585/ Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model Mustafa, Daud Adewale, Abideen Adeyemi Abdul Razak, Nor Azam HC Economic History and Conditions Considering the dismal growth performance in many African countries despite the huge transfer of resources as foreign aid or development assistance (DA) by various multilateral development and financial institutions like OECD, USAID and Islamic Development Bank (IDB) among others; it was not surprising that Transparency International through its Corruption Perceptions Index (CPI) reports classified most African countries as icons of corruption. In this connection therefore, this study makes an attempt to empirically investigate the nature and pattern of causal relationship existing between corruption and foreign aid in selected African Muslim Countries (AMCs) like Morocco, Egypt, Tunisia and Senegal who are among the major recipients of the development assistance of IDB in more than three decades. As a matter of fact, Autoregressive Distributed Lag (ARDL) model based on Cointegration and Granger-causality tests was adopted. Basically, the findings from our study indicate that the nature of causality existing between corruption and foreign aid is both in the short and long-run analysis. Also, the pattern of causality is both unidirectional and bidirectional. Importantly, our findings revealed the relevance of the corruption trap hypothesis of Collier (2006) to all the countries in the sample, especially for Morocco. Stemming from these findings, we recommend that IDB and other African development partners like the OIC, OECD, OPEC and a host of others should give more commitment to the enthronement of good governance. They should especially facilitate the international war against corruption in these countries and Africa at large because these two measures are fundamental to the growth and development process of the continent. Technology Institute of Dadaab 2013-04 Article PeerReviewed application/pdf en http://irep.iium.edu.my/46585/1/46585.pdf Mustafa, Daud and Adewale, Abideen Adeyemi and Abdul Razak, Nor Azam (2013) Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model. International Journal of Economy, Management and Social Sciences, 2 (4). pp. 108-117. ISSN 2306-7276 E-ISSN 1751-4096 http://www.waprogramming.com/index.php?action=journal&page=showpaper&jid=6&iid=42&pid=187
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HC Economic History and Conditions
spellingShingle	HC Economic History and Conditions Mustafa, Daud Adewale, Abideen Adeyemi Abdul Razak, Nor Azam Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model
description	Considering the dismal growth performance in many African countries despite the huge transfer of resources as foreign aid or development assistance (DA) by various multilateral development and financial institutions like OECD, USAID and Islamic Development Bank (IDB) among others; it was not surprising that Transparency International through its Corruption Perceptions Index (CPI) reports classified most African countries as icons of corruption. In this connection therefore, this study makes an attempt to empirically investigate the nature and pattern of causal relationship existing between corruption and foreign aid in selected African Muslim Countries (AMCs) like Morocco, Egypt, Tunisia and Senegal who are among the major recipients of the development assistance of IDB in more than three decades. As a matter of fact, Autoregressive Distributed Lag (ARDL) model based on Cointegration and Granger-causality tests was adopted. Basically, the findings from our study indicate that the nature of causality existing between corruption and foreign aid is both in the short and long-run analysis. Also, the pattern of causality is both unidirectional and bidirectional. Importantly, our findings revealed the relevance of the corruption trap hypothesis of Collier (2006) to all the countries in the sample, especially for Morocco. Stemming from these findings, we recommend that IDB and other African development partners like the OIC, OECD, OPEC and a host of others should give more commitment to the enthronement of good governance. They should especially facilitate the international war against corruption in these countries and Africa at large because these two measures are fundamental to the growth and development process of the continent.
format	Article
author	Mustafa, Daud Adewale, Abideen Adeyemi Abdul Razak, Nor Azam
author_facet	Mustafa, Daud Adewale, Abideen Adeyemi Abdul Razak, Nor Azam
author_sort	Mustafa, Daud
title	Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model
title_short	Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model
title_full	Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model
title_fullStr	Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model
title_full_unstemmed	Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model
title_sort	foreign aid and corruption in selected african muslim countries: an empirical study based on autoregressive distributed lag (ardl) model
publisher	Technology Institute of Dadaab
publishDate	2013
url	http://irep.iium.edu.my/46585/ http://irep.iium.edu.my/46585/ http://irep.iium.edu.my/46585/1/46585.pdf
first_indexed	2023-09-18T21:06:19Z
last_indexed	2023-09-18T21:06:19Z
_version_	1777410957363904512

Foreign aid and corruption in selected African Muslim countries: an empirical study based on Autoregressive Distributed Lag (ARDL) model

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