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 'participatory dimension of governance' and the '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 Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2011/2.
Date of creation: 2011
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Aid Allocation; Governance Indicators; Factor Analysis; MCA;
Other versions of this item:
- Martin Knoll & Petra Zloczysti, 2011. "The Good Governance Indicators of the Millennium Challenge Account: How Many Dimensions Are Really Being Measured?," Discussion Papers of DIW Berlin 1148, DIW Berlin, German Institute for Economic Research.
- C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; 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-2011-05-14 (All new papers)
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