Performance-based aid has been proposed as an alternative to the failed traditional approach whereby donors make aid conditional on the reform promises of recipient countries. However, hardly any empirical evidence exists on whether ex post rewards are effective in inducing reforms. We attempt...

The accountability of non-governmental organizations (NGOs) has various dimensions. From an economic perspective, official financiers, private donors as well as aid recipients could expect more charitable output from NGOs, if less efficient organizations were squeezed out of international...

We assess empirically whether foreign official development assistance (ODA) has been effective in alleviating HIV/AIDS epidemics, which figures prominently among the Millennium Development Goals. We employ a difference-in-difference-in-differences approach to identify the treatment effect of ODA...

The decisions of foreign investors on technical cooperation versus equity engagements and on the degree of ownership in FDI projects are likely to depend on their relative bargaining position vis-à-vis the host country. We perform negative binominal regressions by making use of a unique dataset...

We argue that donors could improve the effectiveness of foreign aid by pursuing complementary and coherent non-aid policies. In particular, we hypothesize that aid from donors that are open to immigration has stronger growth effects than aid from closed donors. We estimate the aid-growth nexus...

The non-distribution constraint of non-governmental organizations (NGOs) would be harder, and financiers as well as recipients could expect more charitable output from them, if less efficient NGOs were squeezed out of international development cooperation. We employ Probit and complementary...

We address the question of whether foreign aid helps attract foreign direct investment (FDI). This could be achieved if well-targeted aid removed critical impediments to higher FDI inflows. In particular, we test the hypothesis that aid for education is an effective means to increase FDI flows...

type="main" <title type="main">SUMMARY</title> <p>The regional allocation of aid within recipient countries has been largely ignored. We use geocoded data on the location of aid projects financed by the World Bank and the African Development Bank within a sample of 27 recipient countries to assess the claim of donors that...</p>

We empirically analyze how other aid agencies, within and outside the United States, reacted to the Millennium Challenge Corporation (MCC). We find that positive signaling effects dominate possible substitution effects. Striving for MCC eligibility thus pays.