The impact of aid on bureaucratic quality: does the mode of delivery matter?

Pablo Selaya and Rainer Thiele

No 1494, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

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.

Keywords: Foreign aid; bureaucratic quality (search for similar items in EconPapers)
JEL-codes: F35 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: THE IMPACT OF AID ON BUREAUCRATIC QUALITY: DOES THE MODE OF DELIVERY MATTER? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1494

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