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A Spatial Analysis of Foreign Aid and Civil Society

Author

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  • Vecci, Joseph

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Zelinsky, Tomas

    (Faculty of Economics, Technical University of Kosice, Kosice, Slovakia)

Abstract

We use a Spatial Durbin Model to examine the relationship between civil society aid projects and measures of civil society including membership and participation in community groups and satisfaction with democracy in Nigeria and Uganda. We then study the effect of civil society aid programs on corruption, a proxy for elite capture. The spatial model allows us to estimate the effects of project spillovers that may indirectly impact non project areas. We find that civil society aid projects are associated with a decrease in the creation of community groups and attendance at community meetings in Nigeria. In Uganda, we find that civil society aid projects have a negative effect on the membership of community groups in neighboring areas. We also find that civil society projects have a positive effect on satisfaction with democracy, but they reduce satisfaction in neighbouring areas in both Nigeria and Uganda. Our corruption measures reveal that corruption has a positive direct correlation with civil society aid projects in Uganda. A number of robustness measures are used to account for selection.

Suggested Citation

  • Vecci, Joseph & Zelinsky, Tomas, 2017. "A Spatial Analysis of Foreign Aid and Civil Society," Working Papers in Economics 688, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0688
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    File URL: http://hdl.handle.net/2077/51440
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    More about this item

    Keywords

    Foreign Aid; civil society; corruption; Africa; development;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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