Is aid for infrastructure effective? A difference-in-difference-in-differences approach

Arbeitspapier

The effects of foreign aid on the endowment of recipient countries with infrastructure have received surprisingly little attention in the empirical literature. This paper addresses this question by performing difference-in-difference-in-differences estimations, with the treatment defined as steep increases in aid for infrastructure since a distinct change in donor behavior in 2005. Mitigating endogeneity concerns in this way, we consistently find aid for infrastructure to be ineffective in improving the recipient countries' endowment with infrastructure. This finding holds not only for an encompassing index of economic infrastructure, but also for sub-indices of infrastructure in transportation, communication, energy, and finance.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 2034

Classification and Topics

• Classification: Wirtschaft ; Foreign Aid ; Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
• Subject: sector-specific aid ; aid effectiveness ; infrastructure ; difference-in-difference-in-differences

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Donaubauer, Julian ; Nunnenkamp, Peter
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/129885
• Last update: 10.03.2025, 11:42 AM CET