The Effectiveness of Aid in Improving Regulations: Empirical evidence and the drivers of change in Rwanda
AbstractThe paper assesses the impact of foreign aid on the change in the quality of regulations, and identifies the drivers of this change in a case study on Rwanda. In the empirical analysis, we find that highly targeted Aid for Business has a significantly positive impact on regulations across developing countries, but we do not find any effects for overall aid or aid directed at broad governance areas. In the country case study, we depart from Rwanda's excellent regulatory performance to explain how aid is effective in changing the regulatory environment, driven by the countryâ€™s strong political leadership and its singular institutional history.
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Bibliographic InfoPaper provided by Institut fuer Entwicklungsforschung und Entwicklungspolitik, Ruhr-Universitaet Bochum in its series IEE Working Papers with number 198.
Length: 28 pages
Date of creation: 2013
Date of revision:
Contact details of provider:
Postal: Institute of Development Research and Development Policy, Ruhr University Bochum, Universitaetsstr. 150, D-44801 Bochum, Germany
Web page: http://www.development-research.org/
More information through EDIRC
Foreign aid; Governance; Business regulations; Rwanda;
Find related papers by JEL classification:
- F35 - International Economics - - International Finance - - - Foreign Aid
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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