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

Author

Listed:
  • Pablo Selaya
  • Rainer Thiele

Abstract

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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Suggested Citation

  • Pablo Selaya & Rainer Thiele, 2012. "The Impact Of Aid On Bureaucratic Quality: Does The Mode Of Delivery Matter?," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(3), pages 379-386, April.
  • Handle: RePEc:wly:jintdv:v:24:y:2012:i:3:p:379-386
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    Cited by:

    1. Zohid Askarov & Hristos Doucouliagos, 2013. "Does aid improve democracy and governance? A meta-regression analysis," Public Choice, Springer, vol. 157(3), pages 601-628, December.
    2. Pietro Alessandrini & Andrea Presbitero, 2012. "Low-Income Countries and an SDR-based International Monetary System," Open Economies Review, Springer, vol. 23(1), pages 129-150, February.
    3. Pietro Alessandrini & Andrea Filippo Presbitero, 2011. "Low-Income Countries Vulnerabilities and the Need for an SDR-Based International Monetary System," Mo.Fi.R. Working Papers 55, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    4. Gustav Ranis, 2013. "Another Look at Foreign Aid," WIDER Working Paper Series wp-2013-119, World Institute for Development Economic Research (UNU-WIDER).
    5. Felicitas Nowak-Lehmann D. & Elena Gross, 2015. "What effect does development aid have on productivity in recipient countries? An analysis using quantiles and thresholds," Ibero America Institute for Econ. Research (IAI) Discussion Papers 232, Ibero-America Institute for Economic Research.
    6. Axel Dreher & Valentin F. Lang & Sebastian Ziaja, 2017. "Foreign Aid in Areas of Limited Statehood," CESifo Working Paper Series 6340, CESifo.
    7. Ranis, Gustav, 2012. "Another Look at Foreign Aid," Center Discussion Papers 133408, Yale University, Economic Growth Center.
    8. Gustav Ranis, 2012. "Another Look at Foreign Aid," Working Papers 1015, Economic Growth Center, Yale University.
    9. Broich, Tobias & Szirmai, Adam & Thomsson, Kaj, 2015. "Precolonial centralisation, foreign aid and modern state capacity in Africa," MERIT Working Papers 2015-025, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Dijkstra, Geske, 2018. "Aid and good governance: Examining aggregate unintended effects of aid," Evaluation and Program Planning, Elsevier, vol. 68(C), pages 225-232.
    11. Paweł Charasz & Jan P Vogler, 2021. "Does EU funding improve local state capacity? Evidence from Polish municipalities," European Union Politics, , vol. 22(3), pages 446-471, September.
    12. Ranis, Gustav, 2013. "Another Look at Foreign Aid," WIDER Working Paper Series 119, World Institute for Development Economic Research (UNU-WIDER).
    13. Elena Groß & Felicitas Nowak‐Lehmann Danzinger, 2022. "What effect does development aid have on productivity in recipient countries?," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1438-1465, August.
    14. Ranis, Gustav, 2012. "Another Look at Foreign Aid," Working Papers 106, Yale University, Department of Economics.

    More about this item

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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