[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v66y2015icp516-531.html
   My bibliography  Save this article

The Role of Governance in Determining Foreign Aid Flow Composition

Author

Listed:
  • Winters, Matthew S.
  • Martinez, Gina
Abstract
We hypothesize that selective donors will use types of aid over which they have more control when providing assistance to poorly governed countries. We use an original classification of project purpose codes in the AidData dataset to categorize aid flows from the period 2004 to 2010. Results from fixed effect and compositional data models provide evidence of selectivity in terms of overall aid flows, a tradeoff between technical assistance and programmatic lending, and a tradeoff between social sector and infrastructure projects.

Suggested Citation

  • Winters, Matthew S. & Martinez, Gina, 2015. "The Role of Governance in Determining Foreign Aid Flow Composition," World Development, Elsevier, vol. 66(C), pages 516-531.
  • Handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:516-531
    DOI: 10.1016/j.worlddev.2014.09.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X1400285X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.worlddev.2014.09.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Montinola, Gabriella R. & Jackman, Robert W., 2002. "Sources of Corruption: A Cross-Country Study," British Journal of Political Science, Cambridge University Press, vol. 32(1), pages 147-170, January.
    2. Alesina, Alberto & Dollar, David, 2000. "Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
    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. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
    5. Paul Clist & Alessia Isopi & Oliver Morrissey, 2012. "Selectivity on aid modality: Determinants of budget support from multilateral donors," The Review of International Organizations, Springer, vol. 7(3), pages 267-284, September.
    6. Fleck, Robert K. & Kilby, Christopher, 2010. "Changing aid regimes? U.S. foreign aid from the Cold War to the War on Terror," Journal of Development Economics, Elsevier, vol. 91(2), pages 185-197, March.
    7. Martens,Bertin & Mummert,Uwe & Murrell,Peter & Seabright,Paul, 2008. "The Institutional Economics of Foreign Aid," Cambridge Books, Cambridge University Press, number 9780521055390, September.
    8. Okada, Keisuke & Samreth, Sovannroeun, 2012. "The effect of foreign aid on corruption: A quantile regression approach," Economics Letters, Elsevier, vol. 115(2), pages 240-243.
    9. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    10. Maizels, Alfred & Nissanke, Machiko K., 1984. "Motivations for aid to developing countries," World Development, Elsevier, vol. 12(9), pages 879-900, September.
    11. repec:fpr:resrep:kamiljonakramov is not listed on IDEAS
    12. Wil Hout, 2002. "Good Governance and Aid: Selectivity Criteria in Development Assistance," Development and Change, International Institute of Social Studies, vol. 33(3), pages 511-527, June.
    13. Gisselquist, Rachel M., 2012. "Good Governance as a Concept, and Why This Matters for Development Policy," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).
    14. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    15. Stijn Claessens & Danny Cassimon & Bjorn Van Campenhout, 2009. "Evidence on Changes in Aid Allocation Criteria," The World Bank Economic Review, World Bank, vol. 23(2), pages 185-208, June.
    16. Jan‐Egbert Sturm & Helge Berger & Jakob De Haan, 2005. "Which Variables Explain Decisions On Imf Credit? An Extreme Bounds Analysis," Economics and Politics, Wiley Blackwell, vol. 17(2), pages 177-213, July.
    17. 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.
    18. William Easterly & Tobias Pfutze, 2008. "Where Does the Money Go? Best and Worst Practices in Foreign Aid," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 29-52, Spring.
    19. William Easterly, 2007. "Are aid agencies improving? [‘Who gives foreign aid to whom and why?’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 22(52), pages 634-678.
    20. Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.
    21. Easterly, William & Williamson, Claudia R., 2011. "Rhetoric versus Reality: The Best and Worst of Aid Agency Practices," World Development, Elsevier, vol. 39(11), pages 1930-1949.
    22. Akramov, Kamiljon T., 2012. "Foreign aid allocation, governance, and economic growth," IFPRI books, International Food Policy Research Institute (IFPRI), number Kamiljon Akramov.
    23. Freytag, Andreas & Pehnelt, Gernot, 2009. "Debt Relief and Governance Quality in Developing Countries," World Development, Elsevier, vol. 37(1), pages 62-80, January.
    24. Katz, Jonathan N. & King, Gary, 1999. "A Statistical Model for Multiparty Electoral Data," American Political Science Review, Cambridge University Press, vol. 93(1), pages 15-32, March.
    25. Stefan Koeberle & Zoran Stavreski & Jan Walliser, 2006. "Budget Support as More Effective Aid? Recent Experiences and Emerging Lessons," World Bank Publications - Books, The World Bank Group, number 6958.
    26. Edgardo Campos, J. & Lien, Donald & Pradhan, Sanjay, 1999. "The Impact of Corruption on Investment: Predictability Matters," World Development, Elsevier, vol. 27(6), pages 1059-1067, June.
    27. Clist, Paul, 2011. "25Years of Aid Allocation Practice: Whither Selectivity?," World Development, Elsevier, vol. 39(10), pages 1724-1734.
    28. repec:unu:wpaper:wp2012-30 is not listed on IDEAS
    29. Burnside, Craig & Dollar, David, 2004. "Aid, policies, and growth : revisiting the evidence," Policy Research Working Paper Series 3251, The World Bank.
    30. repec:fpr:ifprib:kamiljonakramov is not listed on IDEAS
    31. David de la Croix & Clara Delavallade, 2014. "Why corrupt governments may receive more foreign aid," Oxford Economic Papers, Oxford University Press, vol. 66(1), pages 51-66, January.
    32. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, April.
    33. Jan P. Pronk, 2001. "Aid as a Catalyst," Development and Change, International Institute of Social Studies, vol. 32(4), pages 611-629, September.
    34. Dreher, Axel & Sturm, Jan-Egbert & Vreeland, James Raymond, 2009. "Development aid and international politics: Does membership on the UN Security Council influence World Bank decisions?," Journal of Development Economics, Elsevier, vol. 88(1), pages 1-18, January.
    35. Stephen Knack, 2001. "Aid Dependence and the Quality of Governance: Cross-Country Empirical Tests," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 310-329, October.
    36. Jakob Svensson, 2000. "Foreign aid and rent-seeking," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 165-189, Springer.
    37. Akramov, Kamiljon T., 2012. "Foreign aid allocation, governance, and economic growth:," Issue briefs 72, International Food Policy Research Institute (IFPRI).
    38. Tito Cordella & Giovanni Dell'Ariccia, 2007. "Budget Support Versus Project Aid: A Theoretical Appraisal," Economic Journal, Royal Economic Society, vol. 117(523), pages 1260-1279, October.
    39. Alessia Isopi & Fabrizio Mattesini, 2008. "Aid and Corruption: Do Donors Use Development Assistance to Provide the “Right” Incentives?," CEIS Research Paper 121, Tor Vergata University, CEIS, revised 14 Jul 2008.
    40. Rodrik, Dani, 1995. "Why is there Multilateral Lending?," CEPR Discussion Papers 1207, C.E.P.R. Discussion Papers.
    41. Helge Berger & Jakob de Haan & Jan-Egbert Sturm, 2005. "Which Variables Explain Decisions on IMF Credit? An Extreme Bounds Analysis�," TWI Research Paper Series 13, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    42. Benjamin A. Olken, 2007. "Monitoring Corruption: Evidence from a Field Experiment in Indonesia," Journal of Political Economy, University of Chicago Press, vol. 115(2), pages 200-249.
    43. repec:bla:ecopol:v:17:y:2005:i::p:177-213 is not listed on IDEAS
    44. de Mesquita, Bruce Bueno & Smith, Alastair, 2009. "A Political Economy of Aid," International Organization, Cambridge University Press, vol. 63(2), pages 309-340, April.
    45. Rachel M. Gisselquist, 2012. "Good Governance as a Concept, and Why This Matters for Development Policy," WIDER Working Paper Series wp-2012-030, World Institute for Development Economic Research (UNU-WIDER).
    46. repec:bla:devpol:v:25:y:2007:i:5:p:533-574 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reinsberg, Bernhard, 2015. "Foreign Aid Responses to Political Liberalization," World Development, Elsevier, vol. 75(C), pages 46-61.
    2. Michael G. Findley & Helen V. Milner & Daniel L. Nielson, 2017. "The choice among aid donors: The effects of multilateral vs. bilateral aid on recipient behavioral support," The Review of International Organizations, Springer, vol. 12(2), pages 307-334, June.
    3. Lauren L. Ferry & Emilie M. Hafner-Burton & Christina J. Schneider, 2020. "Catch me if you care: International development organizations and national corruption," The Review of International Organizations, Springer, vol. 15(4), pages 767-792, October.
    4. Masaki, Takaaki, 2016. "Coups d’État and Foreign Aid," World Development, Elsevier, vol. 79(C), pages 51-68.
    5. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    6. Matt Andrews, 2015. "Has Sweden Injected Realism into Public Financial Management Reforms in Partner Countries?," CID Working Papers 303, Center for International Development at Harvard University.
    7. Dreher, Axel & Lang, Valentin & Reinsberg, Bernhard, 2024. "Aid effectiveness and donor motives," World Development, Elsevier, vol. 176(C).
    8. Tobias Heinrich & Yoshiharu Kobayashi, 2022. "Evaluating explanations for poverty selectivity in foreign aid," Kyklos, Wiley Blackwell, vol. 75(1), pages 30-47, February.
    9. Wako, Hassen, 2016. "Aid, institutions and economic growth: Heterogeneous parameters and heterogeneous donors," MERIT Working Papers 2016-009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Kafayat Amusa & Nara Monkam & Nicola Viegi, 2016. "The Political and Economic Dynamics of Foreign Aid: A Case Study of United States and Chinese Aid to Sub-Sahara Africa," Working Papers 201628, University of Pretoria, Department of Economics.
    11. Balázs Szent-Iványi, 2015. "Are Democratising Countries Rewarded with Higher Levels of Foreign Aid?," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(4), pages 593-615, December.
    12. Menard, Audrey-Rose & Weill, Laurent, 2016. "Understanding the link between aid and corruption: A causality analysis," Economic Systems, Elsevier, vol. 40(2), pages 260-272.
    13. Helen V. Milner & Daniel L. Nielson & Michael G. Findley, 2016. "Citizen preferences and public goods: comparing preferences for foreign aid and government programs in Uganda," The Review of International Organizations, Springer, vol. 11(2), pages 219-245, June.
    14. Axel Dreher & Sarah Langlotz & Silvia Marchesi, 2017. "Information Transmission And Ownership Consolidation In Aid Programs," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1671-1688, October.
    15. Öhler, Hannes & Nunnenkamp, Peter & Dreher, Axel, 2012. "Does conditionality work? A test for an innovative US aid scheme," European Economic Review, Elsevier, vol. 56(1), pages 138-153.
    16. Maekawa, Wakako, 2024. "United Nations peacekeeping operations and multilateral foreign aid: Credibility of good governance," World Development, Elsevier, vol. 176(C).
    17. Ravetti, Chiara & Sarr, Mare & Swanson, Tim, 2018. "Foreign aid and political instability in resource-rich countries," Resources Policy, Elsevier, vol. 58(C), pages 277-294.
    18. Eichenauer, Vera & Knack, Stephen, 2015. "Bilateralizing multilateral aid? Aid allocation by World Bank trust funds," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113211, Verein für Socialpolitik / German Economic Association.
    19. Mfouapon Alassa & Kamdem Cyrille Bergaly & Mohammadou Nourou, 2022. "Agricultural Foreign Aid Allocation in Sub-Saharan Africa: The importance of Democracy and Quality of Governance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(3), pages 84-100, March.
    20. Axel Dreher & Andreas Fuchs, 2015. "Rogue aid? An empirical analysis of China's aid allocation," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(3), pages 988-1023, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:516-531. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.