Lessmann, Christian; Markwardt, Gunther - In: World Development 40 (2012) 9, pp. 1723-1749
This paper examines whether the degree of fiscal decentralization in aid-receiving countries matters in explaining aid … effectiveness. The decentralization theorem predicts that the devolution of powers should increase aid effectiveness, since local … decision-makers are better informed about local needs. Thereby decentralization may also have reverse effects, e.g., through …