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Pablo Selaya ,
Rainer Thiele Homepage

The Impact of Aid on Bureaucratic Quality: Does the Mode of Delivery Matter?

  • Abstract
    We show that the impact of foreign aid on bureaucratic quality in recipient countries varies with the mode of delivery. Specifically, grants are found to impair the functioning of the bureaucracy, whereas loans are not. The negative impact of grants is larger when they are given as budget support rather than as assistance for specific projects or for programs in general

  • Keywords

    Foreign aid, bureaucratic quality

  • JEL classification

    F35

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