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The political economy of project preparation: An empirical analysis of World Bank projects

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  • Kilby, Christopher

Abstract

Using a novel application of stochastic frontier analysis to overcome data limitations, this paper finds substantially shorter project preparation periods for World Bank loans to countries that are geopolitically important (especially to the U.S.). Accelerated preparation is one explanation for how the World Bank might increase the number of loans to a recipient member country within a fixed time frame, for example in response to that country siding with powerful donor countries on important UN votes or while that country occupies an elected seat on the UN Security Council or the World Bank Executive Board. This channel of donor influence has important implications for institutional reform and provides a new angle to examine the cost of favoritism and the impact of project preparation.

Suggested Citation

  • Kilby, Christopher, 2013. "The political economy of project preparation: An empirical analysis of World Bank projects," Journal of Development Economics, Elsevier, vol. 105(C), pages 211-225.
  • Handle: RePEc:eee:deveco:v:105:y:2013:i:c:p:211-225
    DOI: 10.1016/j.jdeveco.2013.07.011
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    1. Axel Dreher & Stephan Klasen & James Raymond Vreeland & Eric Werker, 2013. "The Costs of Favoritism: Is Politically Driven Aid Less Effective?," Economic Development and Cultural Change, University of Chicago Press, vol. 62(1), pages 157-191.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Donor influence; Project preparation; Stochastic frontier analysis; United States; UN voting; World Bank;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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