The Effectiveness of Aid in Improving Regulations: Empirical evidence and the drivers of change in Rwanda
The paper assesses the impact of foreign aid on the change in the quality of regulations, and identifies the drivers of this change in a case study on Rwanda. In the empirical analysis, we find that highly targeted Aid for Business has a significantly positive impact on regulations across developing countries, but we do not find any effects for overall aid or aid directed at broad governance areas. In the country case study, we depart from Rwanda's excellent regulatory performance to explain how aid is effective in changing the regulatory environment, driven by the countryâ€™s strong political leadership and its singular institutional history.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Institute of Development Research and Development Policy, Ruhr University Bochum, Universitaetsstr. 150, D-44801 Bochum, Germany|
Web page: http://www.development-research.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard Blundell & Steve Bond, 1995.
"Initial conditions and moment restrictions in dynamic panel data models,"
IFS Working Papers
W95/17, Institute for Fiscal Studies.
- Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Joshua Hall & Robert Lawson, 2009. "Economic Freedom and Peace," Atlantic Economic Journal, International Atlantic Economic Society, vol. 37(4), pages 445-446, December.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2000.
"The Colonial Origins of Comparative Development: An Empirical Investigation,"
NBER Working Papers
7771, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
- Boockmann, Bernhard & Dreher, Axel, 2003.
"The contribution of the IMF and the World Bank to economic freedom,"
European Journal of Political Economy,
Elsevier, vol. 19(3), pages 633-649, September.
- Bernhard Boockmann & Axel Dreher, 2002. "The Contribution of the IMF and the World Bank to Economic Freedom," International Finance 0207001, EconWPA.
- Boockmann, Bernhard & Dreher, Axel, 2002. "The Contribution of the IMF and the World Bank to Economic Freedom," ZEW Discussion Papers 02-18, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Kilby, Christopher, 2004.
"Aid and Regulation,"
Vassar College Department of Economics Working Paper Series
65, Vassar College Department of Economics.
- Stelios Michalopoulos & Elias Papaioannou, 2011.
"Divide and Rule or the Rule of the Divided? Evidence from Africa,"
NBER Working Papers
17184, National Bureau of Economic Research, Inc.
- Stelios Michalopoulos & Elias Papaioannou, 2011. "Divide and Rule or the Rule of the Divided? Evidence from Africa," Economics Working Papers 0099, Institute for Advanced Study, School of Social Science.
- Michalopoulos, Stelios & Papaioannou, Elias, 2010. "Divide and Rule or the Rule of the Divided? Evidence from Africa," CEPR Discussion Papers 8088, C.E.P.R. Discussion Papers.
- Stelios Michalopoulos & Elias Papaioannou, 2010. "Divide and Rule or the Rule of the Divided? Evidence from Africa," Discussion Papers Series, Department of Economics, Tufts University 0756, Department of Economics, Tufts University.
- de Haan, Jakob & Sturm, Jan-Egbert, 2003. "Does more democracy lead to greater economic freedom? New evidence for developing countries," European Journal of Political Economy, Elsevier, vol. 19(3), pages 547-563, September.
- Jakob de Haan & Susanna Lundstroem & Jan-Egbert Sturm, 2005.
"Market oriented institutions and policies and economic growth: A critical survey,"
TWI Research Paper Series
5, Thurgauer Wirtschaftsinstitut, Universitï¿½t Konstanz.
- Jakob De Haan & Susanna Lundström & Jan-Egbert Sturm, 2006. "Market-oriented institutions and policies and economic growth: A critical survey," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 157-191, 04.
- Dreher, Axel & Rupprecht, Sarah M., 2007. "IMF programs and reforms -- inhibition or encouragement?," Economics Letters, Elsevier, vol. 95(3), pages 320-326, June.
- Martin Gassebner & Noel Gaston & Michael Lamla, 2008.
"The Inverse Domino Effect: Are Economic Reforms Contagious?,"
KOF Working papers
08-187, KOF Swiss Economic Institute, ETH Zurich.
- Martin Gassebner & Noel Gaston & Michael J. Lamla, 2011. "The Inverse Domino Effect: Are Economic Reforms Contagious?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(1), pages 183-200, 02.
- Martin Gassebner & Noel Gaston & Michael Lamla, 2007. "The Inverse Domino Effect: Are Economic Reforms Contagious?," Monash Economics Working Papers 31-07, Monash University, Department of Economics.
- Kevin Sylwester, 2008. "Historical legacy and institutions across countries," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 373-398, November.
- Coviello, Decio & Islam, Roumeen, 2006. "Does aid help improve economic institutions ?," Policy Research Working Paper Series 3990, The World Bank.
- Heckelman, Jac & Knack, Stephen, 2005.
"Foreign aid and market-liberalizing reform,"
Policy Research Working Paper Series
3557, The World Bank.
- Nicola Gennaioli & Ilia Rainer, 2007. "The modern impact of precolonial centralization in Africa," Journal of Economic Growth, Springer, vol. 12(3), pages 185-234, September.
- Andrei A. Levchenko, 2008.
"International Trade and Institutional Change,"
579, Research Seminar in International Economics, University of Michigan.
- James A. Robinson, 2002. "States and Power in Africa by Jeffrey I. Herbst: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 510-519, June.
- Brautigam, Deborah A & Knack, Stephen, 2004. "Foreign Aid, Institutions, and Governance in Sub-Saharan Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 255-85, January.
When requesting a correction, please mention this item's handle: RePEc:bom:ieewps:198. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dorothee Sensen)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.