Sowing and reaping: institutional quality and project outcomes in developing countries
"Much of the academic debate on the effectiveness of foreign aid is centered on the relationship between aid and growth. Different aid-growth studies find conflicting results: aid promotes growth everywhere; aid has a zero or negative impact on growth everywhere; or the effect of aid on growth...
Gespeichert in:
| 1. Verfasser: | |
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| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
[Washington, D.C]
World Bank
[2005]
|
| Schriftenreihe: | Policy research working paper
3524 |
| Schlagworte: | |
| Online-Zugang: | BSB01 EUV01 HTW01 FHI01 IOS01 Volltext |
| Zusammenfassung: | "Much of the academic debate on the effectiveness of foreign aid is centered on the relationship between aid and growth. Different aid-growth studies find conflicting results: aid promotes growth everywhere; aid has a zero or negative impact on growth everywhere; or the effect of aid on growth depends on recipient-specific characteristics, such as the quality of institutions and policies. Although these studies fuel an interesting debate, cross-sectional macroeconomic studies cannot be the last word on the topic of aid effectiveness. In this paper, Dollar and Levin introduce microeconomic evidence on factors conducive to the success of aid-funded projects in developing countries. The authors use the success rate of World Bank-financed projects in the 1990s, as determined by the Operations Evaluation Department, as their dependent variable. Using instrumental variables estimation, the authors find that existence of high-quality institutions in a recipient country raises the probability that aid will be used effectively. There is also some evidence that geography matters, but location in Sub-Saharan Africa is a more robust indicator of lower project success rate than tropical climate. The authors proceed to disaggregate the success rate of World Bank projects by lending instrument type and by investment sector, finding that different institutions are more important for different types of projects. The finding of a strong relationship between institutional quality and project success serves to provide further support to the hypothesis that aid effectiveness is conditional on institutions and policies of the recipient country. This paper--a product of Development Policy, Development Economics Senior Vice Presidency--is part of a larger effort in the Bank to examine aid effectiveness"--World Bank web site |
| Beschreibung: | Includes bibliographical references Title from PDF file as viewed on 2/16/2005 |
| Beschreibung: | 1 Online-Ressource |
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| spelling | Dollar, David Verfasser aut Sowing and reaping institutional quality and project outcomes in developing countries David Dollar, and Victoria Levin [Washington, D.C] World Bank [2005] 1 Online-Ressource txt rdacontent c rdamedia cr rdacarrier Policy research working paper 3524 Includes bibliographical references Title from PDF file as viewed on 2/16/2005 "Much of the academic debate on the effectiveness of foreign aid is centered on the relationship between aid and growth. Different aid-growth studies find conflicting results: aid promotes growth everywhere; aid has a zero or negative impact on growth everywhere; or the effect of aid on growth depends on recipient-specific characteristics, such as the quality of institutions and policies. Although these studies fuel an interesting debate, cross-sectional macroeconomic studies cannot be the last word on the topic of aid effectiveness. In this paper, Dollar and Levin introduce microeconomic evidence on factors conducive to the success of aid-funded projects in developing countries. The authors use the success rate of World Bank-financed projects in the 1990s, as determined by the Operations Evaluation Department, as their dependent variable. Using instrumental variables estimation, the authors find that existence of high-quality institutions in a recipient country raises the probability that aid will be used effectively. There is also some evidence that geography matters, but location in Sub-Saharan Africa is a more robust indicator of lower project success rate than tropical climate. The authors proceed to disaggregate the success rate of World Bank projects by lending instrument type and by investment sector, finding that different institutions are more important for different types of projects. The finding of a strong relationship between institutional quality and project success serves to provide further support to the hypothesis that aid effectiveness is conditional on institutions and policies of the recipient country. This paper--a product of Development Policy, Development Economics Senior Vice Presidency--is part of a larger effort in the Bank to examine aid effectiveness"--World Bank web site Online-Ausg Also available in print Economic assistance Developing countries Economic development projects Developing countries Developing countries / Economic conditions World Bank Sonstige oth Dollar, David Sowing and reaping http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-3524 Verlag URL des Erstveröffentlichers Volltext |
| spellingShingle | Dollar, David Sowing and reaping institutional quality and project outcomes in developing countries Economic assistance Developing countries Economic development projects Developing countries |
| title | Sowing and reaping institutional quality and project outcomes in developing countries |
| title_auth | Sowing and reaping institutional quality and project outcomes in developing countries |
| title_exact_search | Sowing and reaping institutional quality and project outcomes in developing countries |
| title_exact_search_txtP | Sowing and reaping institutional quality and project outcomes in developing countries |
| title_full | Sowing and reaping institutional quality and project outcomes in developing countries David Dollar, and Victoria Levin |
| title_fullStr | Sowing and reaping institutional quality and project outcomes in developing countries David Dollar, and Victoria Levin |
| title_full_unstemmed | Sowing and reaping institutional quality and project outcomes in developing countries David Dollar, and Victoria Levin |
| title_short | Sowing and reaping |
| title_sort | sowing and reaping institutional quality and project outcomes in developing countries |
| title_sub | institutional quality and project outcomes in developing countries |
| topic | Economic assistance Developing countries Economic development projects Developing countries |
| topic_facet | Economic assistance Developing countries Economic development projects Developing countries |
| url | http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-3524 |
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