Kiel Working Papers, Kiel Institute for World Economics
No 1783:
Need, Merit, and Politics in Multilateral Aid Allocation: A District-Level Analysis of World Bank Projects in India
Peter Nunnenkamp, Hannes Öhler and Maximiliano Sosa Andrés
Abstract: The targeting of foreign aid within recipient countries is
largely unexplored territory. We help close this gap in empirical research
on aid allocation by employing Poisson estimations on the determinants of
the World Bank’s choice of project locations at the district level in
India. The evidence of needs-based location choices is very weak, even
though World Bank activities tend to concentrate in relatively remote
districts. Spatial lags prove to be significant and positive pointing to
regional clustering. Institutional conditions matter insofar as project
locations cluster in districts belonging to states with greater openness to
trade. We do not find any evidence that location choices are affected by
political patronage at the state or district level. However, the World Bank
prefers districts where foreign direct investors may benefit from projects
related to infrastructure
Keywords: aid allocation, World Bank, Indian districts, political constituency; (follow links to similar papers)
JEL-Codes: F35,; F53; (follow links to similar papers)
34 pages, July 2012
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
KWP_1783.pdf 
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom
