Publication:
Better Policies from Policy-Selective Aid?

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creativeworkseries.issn1564-698X
dc.contributor.authorAnnen, Kurt
dc.contributor.authorKnack, Stephen
dc.date.accessioned2024-01-04T16:39:17Z
dc.date.available2024-01-04T16:39:17Z
dc.date.issued2020-06-26
dc.description.abstractThe increased policy selectivity of aid allocations observed in recent years provides aid-recipient countries with an incentive to improve policies. The paper estimates that a change in the World Bank’s Country Policy and Institutional Assessment policy index from 1.5 to 2 for a recipient is associated with an increase of about 13 percent in aid. The analysis also finds a modest but statistically significant positive relationship between the global level of policy-selective aid and policy, suggesting that policy-selective aid improves policies in aid-recipient countries. This effect is properly identified, as the level of policy-selective aid in the global aid budget is exogenous to a recipient country’s policy choice. Furthermore, the paper provides a game-theoretic model that establishes the link between the policy selectivity of the global budget and better recipient-country policies in equilibrium.en
dc.identifier.citationThe World Bank Economic Review
dc.identifier.doi10.1596/40831
dc.identifier.issn0258-6770 (print)
dc.identifier.issn1564-698X (online)
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40831
dc.language.isoen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subjectFOREIGN AID ALLOCATIONS
dc.subjectPOLICY SELECTIVITY
dc.subjectAID EFFECTIVENESS
dc.subjectCONTESTS
dc.titleBetter Policies from Policy-Selective Aid?en
dc.typeJournal Article
dspace.entity.typePublication
okr.associatedcontenthttps://academic.oup.com/wber/article/35/4/829/5863142 Journal website (version of record)
okr.crossref.titleBetter Policies from Policy-Selective Aid?
okr.date.disclosure2020-06-26
okr.doctypePublications & Research
okr.doctypePublications & Research::Journal Article
okr.identifier.doidoi.org/10.1093/wber/lhaa017
okr.identifier.doihttp://dx.doi.org/10.1596/40831
okr.language.supporteden
okr.pagenumber829–844
okr.peerreviewAcademic Peer Review
okr.region.geographicalWorld
okr.topicMacroeconomics and Economic Growth::Foreign Aid
okr.topicFinance and Financial Sector Development::Access to Finance
okr.volume35 (4)
relation.isJournalIssueOfPublication455cced1-cae6-4923-b253-a7db178b26c2
relation.isJournalIssueOfPublication.latestForDiscovery455cced1-cae6-4923-b253-a7db178b26c2
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication3a13adfa-b971-4f6d-9aaa-21ba96efc218
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