Kiel Working Papers, Kiel Institute for World Economics
No 1494:
The Impact of Aid on Bureaucratic Quality: Does the Mode of Delivery Matter?
Pablo Selaya and Rainer Thiele
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; (follow links to similar papers)
JEL-Codes: F35; (follow links to similar papers)
17 pages, March 2009
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