Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 688: A Spatial Analysis of Foreign Aid and Civil Society

Joseph Vecci () and Tomas Zelinsky
Additional contact information
Joseph Vecci: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Tomas Zelinsky: 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.

Keywords: Foreign Aid; civil society; corruption; Africa; development

JEL-codes: D72; D73; F35; O10

39 pages, January 2017

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