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The success of infrastructure projects in low-income countries and the role of selectivity

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  • Limodio, Nicola

Abstract

This research analyzes the success of the infrastructure projects financed by the World Bank, focusing on the causal link between the quality of project implementation and its outcome. The results show that the success of infrastructure projects depends fundamentally on the quality of implementation. Although bad implementation can harm structurally solid projects, good implementation cannot make structurally weak projects successful. This leads to the conclusion that governance and selection of well-designed projects are essential for success and, in order to improve project outcomes, multilateral development banks may need to align their incentives toward this objective and invest more in governance and capacity building.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5694.

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Date of creation: 01 Jun 2011
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Handle: RePEc:wbk:wbrwps:5694

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Related research

Keywords: Banks&Banking Reform; Debt Markets; Public Sector Corruption&Anticorruption Measures; Emerging Markets; Housing&Human Habitats;

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References

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  1. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
  2. César Calderón & Enrique Moral-Benito & Luis Servén, 2011. "Is infrastructure capital productive? A dynamic heterogeneous approach," Banco de Espa�a Working Papers 1103, Banco de Espa�a.
  3. Chauvet, Lisa & Collier, Paul & Duponchel, Marguerite, 2010. "What explains aid project success in post-conflict situations ?," Policy Research Working Paper Series 5418, The World Bank.
  4. Jonathan Isham & Daniel Kaufmann, 1999. "The Forgotten Rationale For Policy Reform: The Productivity Of Investment Projects," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(1), pages 149-184, February.
  5. Dollar, David & Levin, Victoria, 2006. "The Increasing Selectivity of Foreign Aid, 1984-2003," World Development, Elsevier, vol. 34(12), pages 2034-2046, December.
  6. Guillaumont, Patrick & Laajaj, Rachid, 2006. "When instability increases the effectiveness of aid projects," Policy Research Working Paper Series 4034, The World Bank.
  7. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers, Harvard - Institute for International Development 536, Harvard - Institute for International Development.
  8. Dollar, David & Levin, Victoria, 2005. "Sowing and reaping: institutional quality and project outcomes in developing countries," Policy Research Working Paper Series 3524, The World Bank.
  9. Kilby, Christopher, 2000. "Supervision and performance: the case of World Bank projects," Journal of Development Economics, Elsevier, vol. 62(1), pages 233-259, June.
  10. Antonio Estache, 1994. "World Development Report: Infrastructure for Development," ULB Institutional Repository 2013/44144, ULB -- Universite Libre de Bruxelles.
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Cited by:
  1. Christopher Kilby, 2011. "The Political Economy of Project Preparation: An Empirical Analysis of World Bank Projects," Villanova School of Business Department of Economics and Statistics Working Paper Series, Villanova School of Business Department of Economics and Statistics 14, Villanova School of Business Department of Economics and Statistics.
  2. Christopher Kilby, 2012. "Assessing the contribution of donor agencies to aid effectiveness: The impact of World Bank preparation on project outcomes," Villanova School of Business Department of Economics and Statistics Working Paper Series, Villanova School of Business Department of Economics and Statistics 20, Villanova School of Business Department of Economics and Statistics.

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