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The total funding envelope for World Bank projects is often divided among various state and non-state actors, each of which can have competing ideas about or interests in the project. How does the division of financing relate to overall project effectiveness? I argue that too many funding...
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investigate whether geopolitical motives matter by testing whether the effect of aid on economic growth is reduced by the share of … provides quasi-random variation in commitments. Our results show that the effect of aid on growth is significantly lower when … reduces growth. Second, political interest variables are invalid instruments for aid, raising doubts about a large number of …
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As is now well documented, aid is given for both political as well as economic reasons. The conventional wisdom is that politically-motivated aid is less effective in promoting developmental objectives. We examine the ex-post performance ratings of World Bank projects and generally find that...
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