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February 4, 2010 | History

Sowing and reaping 1 edition

Sowing and reaping
David Dollar

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Sowing and reaping
institutional quality and project outcomes in developing countries
David Dollar, and Victoria Levin.

Published 2005 by World Bank in [Washington, D.C .
Written in English.

About the Book

"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.

Edition Notes

Includes bibliographical references.
Title from PDF file as viewed on 2/16/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.

Series
Policy research working paper ;, 3524, Policy research working papers (Online) ;, 3524.

Classifications

Library of Congress
HG3881.5.W57

The Physical Object

Format
Electronic resource

ID Numbers

Open Library
OL3477058M
LC Control Number
2005616668

History Created December 9, 2009 · 2 revisions Download catalog record: RDF / JSON

February 4, 2010 Edited by WorkBot add more information to works
December 9, 2009 Created by WorkBot add works page