Governance is one of the key factors that shape the economic performance of an economy in terms of economic and trade … growth. However, accurately measuring the quality of governance is not an easy task. Research typically uses governance … governance indicator, which is free from perception and subjective biases. Our exercise is based on the inference that economies …

A core result of the aid allocation literature is that the quality of governance in recipient countries does not affect … resolve this dilemma by delivering aid through non-state actors. Using aid shares as well as absolute amounts of aid allocated … through different channels and considering different dimensions of governance, we provide evidence that bypassing governments …