Do Donors Get What They Paid For? Micro Evidence on the Fungibility of Development Project Aid

Recipient government responses to development project aid have typically been studied at high levels of aggregation, using cross-country comparisons and/or aggregate time series data. Yet increasingly the relevant decisions are being made at the local level, in response to specific community-level p...

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Main Authors: van de Walle, Dominique, Cratty, Dorothyjean
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank: Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2005/03/5678946/donors-paid-micro-evidence-fungibility-development-project-aid
http://hdl.handle.net/10986/8819
id okr-10986-8819
recordtype oai_dc
spelling okr-10986-88192021-04-23T14:02:42Z Do Donors Get What They Paid For? Micro Evidence on the Fungibility of Development Project Aid van de Walle, Dominique Cratty, Dorothyjean ACCOUNTING AGGREGATES COMMUNES COMMUNITY ACTIVITIES COMPETITIVE BIDDING CONTRACTORS COUNTERFACTUAL DATA COLLECTION DESCRIPTIVE STATISTICS DISTRICTS DWELLING EARTH ROADS ENDOWMENTS EVALUATION METHODS EXPENDITURE FUNGIBILITY GOOD GOVERNANCE HOUSEHOLDS IMPACT EVALUATION INCOME INTERNATIONAL FINANCIAL INSTITUTIONS INTERVENTION LIVELIHOOD LIVING CONDITIONS LIVING STANDARDS MATCHING MATCHING METHODS OUTCOME INDICATORS PASSENGER PMU POVERTY ALLEVIATION PROGRAMS PROJECT EVALUATION PROJECT IMPACTS REFLEXIVE COMPARISONS ROAD CHARACTERISTICS ROAD DENSITY ROAD IMPROVEMENTS ROAD INFRASTRUCTURE ROAD LENGTH ROAD MAINTENANCE ROAD QUALITY ROAD REHABILITATION ROUTINE MAINTENANCE ROUTINE ROAD MAINTENANCE RURAL AREAS RURAL INFRASTRUCTURE RURAL ROADS RURAL TRANSPORT SELECTION BIAS SURVEYING TERRAIN TRANSPORT TREATMENT EFFECTS VILLAGES WAGE INCOME Recipient government responses to development project aid have typically been studied at high levels of aggregation, using cross-country comparisons and/or aggregate time series data. Yet increasingly the relevant decisions are being made at the local level, in response to specific community-level projects. The authors use local-level data to test for fungibility of World Bank financing of rural road rehabilitation targeted to specific geographic areas of Vietnam. A simple double difference estimate suggests that the project's net contribution to rehabilitated road increments is close to zero, suggesting complete displacement of funding. However, with better controls for the endogeneity of project placement the authors find much less evidence of fungibility, with displacement accounting for around one-third of the aid. The results point to the importance of dealing with selection bias in assessing project aid fungibility. 2012-06-22T18:46:22Z 2012-06-22T18:46:22Z 2005-03 http://documents.worldbank.org/curated/en/2005/03/5678946/donors-paid-micro-evidence-fungibility-development-project-aid http://hdl.handle.net/10986/8819 English en_US Policy Research Working Paper; No. 3542 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank: Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Asia Southeast Asia Vietnam
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTING
AGGREGATES
COMMUNES
COMMUNITY ACTIVITIES
COMPETITIVE BIDDING
CONTRACTORS
COUNTERFACTUAL
DATA COLLECTION
DESCRIPTIVE STATISTICS
DISTRICTS
DWELLING
EARTH ROADS
ENDOWMENTS
EVALUATION METHODS
EXPENDITURE
FUNGIBILITY
GOOD GOVERNANCE
HOUSEHOLDS
IMPACT EVALUATION
INCOME
INTERNATIONAL FINANCIAL INSTITUTIONS
INTERVENTION
LIVELIHOOD
LIVING CONDITIONS
LIVING STANDARDS
MATCHING
MATCHING METHODS
OUTCOME INDICATORS
PASSENGER
PMU
POVERTY ALLEVIATION
PROGRAMS
PROJECT EVALUATION
PROJECT IMPACTS
REFLEXIVE COMPARISONS
ROAD CHARACTERISTICS
ROAD DENSITY
ROAD IMPROVEMENTS
ROAD INFRASTRUCTURE
ROAD LENGTH
ROAD MAINTENANCE
ROAD QUALITY
ROAD REHABILITATION
ROUTINE MAINTENANCE
ROUTINE ROAD MAINTENANCE
RURAL AREAS
RURAL INFRASTRUCTURE
RURAL ROADS
RURAL TRANSPORT
SELECTION BIAS
SURVEYING
TERRAIN
TRANSPORT
TREATMENT EFFECTS
VILLAGES
WAGE INCOME
spellingShingle ACCOUNTING
AGGREGATES
COMMUNES
COMMUNITY ACTIVITIES
COMPETITIVE BIDDING
CONTRACTORS
COUNTERFACTUAL
DATA COLLECTION
DESCRIPTIVE STATISTICS
DISTRICTS
DWELLING
EARTH ROADS
ENDOWMENTS
EVALUATION METHODS
EXPENDITURE
FUNGIBILITY
GOOD GOVERNANCE
HOUSEHOLDS
IMPACT EVALUATION
INCOME
INTERNATIONAL FINANCIAL INSTITUTIONS
INTERVENTION
LIVELIHOOD
LIVING CONDITIONS
LIVING STANDARDS
MATCHING
MATCHING METHODS
OUTCOME INDICATORS
PASSENGER
PMU
POVERTY ALLEVIATION
PROGRAMS
PROJECT EVALUATION
PROJECT IMPACTS
REFLEXIVE COMPARISONS
ROAD CHARACTERISTICS
ROAD DENSITY
ROAD IMPROVEMENTS
ROAD INFRASTRUCTURE
ROAD LENGTH
ROAD MAINTENANCE
ROAD QUALITY
ROAD REHABILITATION
ROUTINE MAINTENANCE
ROUTINE ROAD MAINTENANCE
RURAL AREAS
RURAL INFRASTRUCTURE
RURAL ROADS
RURAL TRANSPORT
SELECTION BIAS
SURVEYING
TERRAIN
TRANSPORT
TREATMENT EFFECTS
VILLAGES
WAGE INCOME
van de Walle, Dominique
Cratty, Dorothyjean
Do Donors Get What They Paid For? Micro Evidence on the Fungibility of Development Project Aid
geographic_facet East Asia and Pacific
Asia
Southeast Asia
Vietnam
relation Policy Research Working Paper; No. 3542
description Recipient government responses to development project aid have typically been studied at high levels of aggregation, using cross-country comparisons and/or aggregate time series data. Yet increasingly the relevant decisions are being made at the local level, in response to specific community-level projects. The authors use local-level data to test for fungibility of World Bank financing of rural road rehabilitation targeted to specific geographic areas of Vietnam. A simple double difference estimate suggests that the project's net contribution to rehabilitated road increments is close to zero, suggesting complete displacement of funding. However, with better controls for the endogeneity of project placement the authors find much less evidence of fungibility, with displacement accounting for around one-third of the aid. The results point to the importance of dealing with selection bias in assessing project aid fungibility.
format Publications & Research :: Policy Research Working Paper
author van de Walle, Dominique
Cratty, Dorothyjean
author_facet van de Walle, Dominique
Cratty, Dorothyjean
author_sort van de Walle, Dominique
title Do Donors Get What They Paid For? Micro Evidence on the Fungibility of Development Project Aid
title_short Do Donors Get What They Paid For? Micro Evidence on the Fungibility of Development Project Aid
title_full Do Donors Get What They Paid For? Micro Evidence on the Fungibility of Development Project Aid
title_fullStr Do Donors Get What They Paid For? Micro Evidence on the Fungibility of Development Project Aid
title_full_unstemmed Do Donors Get What They Paid For? Micro Evidence on the Fungibility of Development Project Aid
title_sort do donors get what they paid for? micro evidence on the fungibility of development project aid
publisher World Bank: Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2005/03/5678946/donors-paid-micro-evidence-fungibility-development-project-aid
http://hdl.handle.net/10986/8819
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