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

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  • Nathalie Francken
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    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.be/licos/publications/dp/dp240.pdf
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    Bibliographic Info

    Paper provided by LICOS - Centre for Institutions and Economic Performance, KU 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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    Keywords: Public Expenditures; Transparency; Media;

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    1. Olken, Benjamin A., 2006. "Corruption and the costs of redistribution: Micro evidence from Indonesia," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 853-870, May.
    2. 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.
    3. Svensson, Jakob, 2000. "Who must pay bribes and how much? Evidence from a cross-section of firms," Policy Research Working Paper Series 2486, The World Bank.
    4. 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.
    5. Benjamin Olken, 2005. "Monitoring corruption: Evidence from a field experiment in indonesia," Natural Field Experiments 00317, The Field Experiments Website.
    6. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," NBER Working Papers 6849, National Bureau of Economic Research, Inc.
    7. Besley, Timothy J. & Burgess, Robin, 2001. "The Political Economy of Government Responsiveness: Theory and Evidence from India," CEPR Discussion Papers 2721, C.E.P.R. Discussion Papers.
    8. Bruce Larson & Bart Minten & Ramy Razafindralambo, 2006. "Unravelling the linkages between the millennium development goals for poverty, education, access to water and household water use in developing countries: Evidence from Madagascar," Journal of Development Studies, Taylor & Francis Journals, vol. 42(1), pages 22-40.
    9. Marcel Fafchamps & Christine Moser, 2003. "Crime, Isolation and Law Enforcement," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(4), pages 625-671, December.
    10. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," Harvard Institute of Economic Research Working Papers 1856, Harvard - Institute of Economic Research.
    11. 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.
    12. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
    13. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
    14. Thurow, Lester C, 1974. "Cash Versus In-Kind Transfers," American Economic Review, American Economic Association, vol. 64(2), pages 190-95, May.
    15. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
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