The Good Governance Indicators of the Millennium Challenge Account: How Many Dimensions Are Really Being Measured?
AbstractThis paper assesses the validity of the perception-based governance indicators used by the US Millennium Challenge Account (MCA) for aid allocation decisions. By conducting Explanatory and Confirmatory Factor Analysis of data from 1996 to 2009, we find that although the MCA purports to measure seven distinct dimensions of governance, only two discrete underlying dimensions, the perceived 'participatory dimension of governance' and the perceived 'overall quality of governance,' can be identified. Our results also show that some of the doubts that have been raised concerning the validity of perception-based governance indicators are less warranted when the indicators are applied exclusively to developing countries.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1148.
Length: 44 p.
Date of creation: 2011
Date of revision:
Publication status: Published in: World Development 40 (2012), 5, 900-915
Aid allocation; governance indicators; factor analysis; MCA; United States;
Other versions of this item:
- Knoll, Martin & Zloczysti, Petra, 2012. "The Good Governance Indicators of the Millennium Challenge Account: How Many Dimensions are Really Being Measured?," World Development, Elsevier, vol. 40(5), pages 900-915.
- Knoll, Martin & Zloczysti, Petra, 2011. "The Good Governance Indicators of the Millennium Challenge Account: How many dimensions are really being measured," Discussion Papers 2011/2, Free University Berlin, School of Business & Economics.
- C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
- F35 - International Economics - - International Finance - - - Foreign Aid
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-05 (All new papers)
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