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Reducing Corruption in Public Education Programs in Africa:Instruments and Capture in Madagascar

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Author Info
Nathalie Francken
Abstract

This paper investigates how the choice of public expenditure instrument is affecting capture in the public education sector. We analyze data on two public funding schemes in Madagascar. We find that there is much more capture of in-kind transfers than of cash transfers. Capture of both instruments declines with better local access to media information and with higher local literacy rates. However, capture of cash grants falls rapidly with a raise in the level of education of the intended beneficiaries, while this effect is significantly weaker for capture of in-kind funds. Our findings suggest that intensive monitoring and increased public access to information should be combined with the right instrument for public funding implementation in order to eradicate capture and corruption.

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File URL: http://www.econ.kuleuven.ac.be/licos/DP/DP2009/DP240.pdf
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Paper provided by LICOS - Centre for Institutions and Economic Performance, K.U.Leuven in its series LICOS Discussion Papers with number 24009.

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Date of creation: 2009
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Handle: RePEc:lic:licosd:24009

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Related research
Keywords: Public Expenditures; Transparency; Media;

Find related papers by JEL classification:
H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
I22 - Health, Education, and Welfare - - Education - - - Educational Finance

This paper has been announced in the following NEP Reports:

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    Other versions:
  4. Edward L. Glaeser & Raven Saks, 2004. "Corruption in America," Harvard Institute of Economic Research Working Papers 2043, Harvard - Institute of Economic Research. [Downloadable!]
  5. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  6. Shang-Jin Wei, 1997. "Why is Corruption So Much More Taxing Than Tax? Arbitrariness Kills," NBER Working Papers 6255, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer. [Downloadable!] (restricted)
  8. David Strömberg, 2004. "Radio's Impact on Public Spending," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 189-221, February. [Downloadable!] (restricted)
  9. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, 09. [Downloadable!]
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  10. Benjamin A. Olken, 2005. "Monitoring Corruption: Evidence from a Field Experiment in Indonesia," NBER Working Papers 11753, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," NBER Working Papers 6849, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Das, Jishnu & Dercon, Stefan & Habyarimana, James & Krishnan, Pramila, 2004. "When can school inputs improve test scores?," Policy Research Working Paper Series 3217, The World Bank. [Downloadable!]
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  13. Blackorby, Charles & Donaldson, David, 1988. "Cash versus Kind, Self-selection, and Efficient Transfers," American Economic Review, American Economic Association, vol. 78(4), pages 691-700, September. [Downloadable!] (restricted)
  14. Jakob Svensson, 2003. "Who Must Pay Bribes And How Much? Evidence From A Cross Section Of Firms," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 207-230, February. [Downloadable!] (restricted)
  15. Marcel Fafchamps & Christine Moser, 2003. "Crime, Isolation and Law Enforcement," Journal of African Economies, Oxford University Press, vol. 12(4), pages 625-671, December.
    Other versions:
  16. Edward L. Glaeser & Raven Saks, 2004. "Corruption in America," NBER Working Papers 10821, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Hamid Reza Davoodi & Vito Tanzi, 1997. "Corruption, Public Investment, and Growth," IMF Working Papers 97/139, International Monetary Fund.
  18. Fafchamps, Marcel & Minten, Bart, 2006. "Crime, Transitory Poverty, and Isolation: Evidence from Madagascar," Economic Development and Cultural Change, University of Chicago Press, vol. 54(3), pages 579-603, April.
  19. Ritva Reinikka & Jakob Svensson, 2005. "Fighting Corruption to Improve Schooling: Evidence from a Newspaper Campaign in Uganda," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 259-267, 04/05. [Downloadable!] (restricted)
  20. Ritva Reinikka & Jakob Svensson, 2004. "Local Capture: Evidence From a Central Government Transfer Program in Uganda," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 678-704, May. [Downloadable!] (restricted)
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