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Assessing the contribution of donor agencies to aid effectiveness: The impact of World Bank preparation on project outcomes

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Abstract

This paper assesses the impact of World Bank project preparation on project outcomes. Using a stochastic frontier model, I generate a measure of World Bank project preparation duration based on variation in political economy factors that are otherwise exogenous to project outcomes. Panel analysis of project data finds that projects with longer preparation periods are significantly more likely to have satisfactory outcome ratings. This result is robust across a range of specifications but the effects are conditional on the degree of economic vulnerability. The impact of World Bank preparation is greater in countries experiencing debt problems. The impact of donor preparation identifies a positive contribution of development aid that is not subject to the usual fungibility critique.

Suggested Citation

  • Christopher Kilby, 2012. "Assessing the contribution of donor agencies to aid effectiveness: The impact of World Bank preparation on project outcomes," Villanova School of Business Department of Economics and Statistics Working Paper Series 20, Villanova School of Business Department of Economics and Statistics.
  • Handle: RePEc:vil:papers:20
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    File URL: http://repec.library.villanova.edu/workingpapers/VSBEcon20.pdf
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    1. repec:dau:papers:123456789/14817 is not listed on IDEAS
    2. repec:spr:revint:v:12:y:2017:i:3:d:10.1007_s11558-016-9256-x is not listed on IDEAS
    3. Denizer, Cevdet & Kaufmann, Daniel & Kraay, Aart, 2013. "Good countries or good projects? Macro and micro correlates of World Bank project performance," Journal of Development Economics, Elsevier, vol. 105(C), pages 288-302.
    4. 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.
    5. Axel Dreher & Vera Eichenauer & Kai Gehring, 2013. "Geopolitics, Aid and Growth," CESifo Working Paper Series 4299, CESifo Group Munich.
    6. David Bulman & Walter Kolkma & Aart Kraay, 2017. "Good countries or good projects? Comparing macro and micro correlates of World Bank and Asian Development Bank project performance," The Review of International Organizations, Springer, vol. 12(3), pages 335-363, September.

    More about this item

    Keywords

    Aid Effectiveness; Fungibility; Project Preparation; Stochastic Frontier Analysis; 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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