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The Impact Of Aid On Bureaucratic Quality: Does The Mode Of Delivery Matter?

  • Pablo Selaya
  • Rainer Thiele

We show that the impact of foreign aid on bureaucratic quality in recipient countries varies with the mode of delivery. Specifically, grants are found to impair the functioning of the bureaucracy, whereas loans are not. The negative impact of grants is larger when they are given as budget support rather than as assistance for specific projects or for programs in general

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 24 (2012)
Issue (Month): 3 (04)
Pages: 379-386

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Handle: RePEc:wly:jintdv:v:24:y:2012:i:3:p:379-386
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  1. Knack,Stephen & Rahman, Aminur, 2004. "Donor fragmentation and bureaucratic quality in aid recipients," Policy Research Working Paper Series 3186, The World Bank.
  2. Peter Nunnenkamp & Gustavo Canavire & Luis TriveƱo, 2004. "Targeting Aid to the Needy and Deserving: Nothing But Promises?," Kiel Working Papers 1229, Kiel Institute for the World Economy.
  3. Alberto Alesina & Beatrice Weder, 2002. "Do Corrupt Governments Receive Less Foreign Aid?," American Economic Review, American Economic Association, vol. 92(4), pages 1126-1137, September.
  4. Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting chickens when they hatch: The short-term effect of aid on growth," International Finance 0407010, EconWPA.
  5. Marcelo J. Moreira, 2003. "A Conditional Likelihood Ratio Test for Structural Models," Econometrica, Econometric Society, vol. 71(4), pages 1027-1048, 07.
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