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The Impact of Aid on Bureaucratic Quality: Does the Mode of Delivery Matter?

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Author Info
Pablo Selaya
Rainer Thiele

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Abstract

We show that the impact of foreign aid on bureaucratic quality in recipient countries varies with the mode of delivery. Specifically, grants are found to impair the functioning of the bureaucracy, whereas loans are not. The negative impact of grants is larger when they are given as budget support rather than as assistance for specific projects or for programs in general

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1494.

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Length: 17 pages
Date of creation: Mar 2009
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Handle: RePEc:kie:kieliw:1494

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Related research
Keywords: Foreign aid; bureaucratic quality;

Find related papers by JEL classification:
F35 - International Economics - - International Finance - - - Foreign Aid

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Peter Nunnenkamp & Rainer Thiele, 2006. "Targeting Aid to the Needy and Deserving: Nothing But Promises?," The World Economy, Blackwell Publishing, vol. 29(9), pages 1177-1201, 09. [Downloadable!] (restricted)
  2. Marcelo J. Moreira, 2003. "A Conditional Likelihood Ratio Test for Structural Models," Econometrica, Econometric Society, vol. 71(4), pages 1027-1048, 07. [Downloadable!] (restricted)
  3. Michael Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting Chickens When They Hatch: The Short-term Effect of Aid on Growth," Working Papers 44, Center for Global Development. [Downloadable!]
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This page was last updated on 2009-11-24.

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