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http://hdl.handle.net/10419/45376
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| Title: | | The Good Governance Indicators of the Millennium Challenge Account: How many dimensions are really being measured  |
| Authors: | | Knoll, Martin Zloczysti, Petra |
| Issue Date: | | 2011 |
| Series/Report no.: | | School of Business & Economics Discussion Paper: Economics 2011/2 |
| Abstract: | | This paper assesses the validity of the perception-based governance indicators used by the US Millennium Challenge Account (MCA) for aid allocation decisions. By conducting Explanatory and Confirmatory Factor Analysis of data from 1996 to 2009, we find that although the MCA purports to measure seven distinct dimensions of governance, only two discrete underlying dimensions, the 'participatory dimension of governance' and the 'overall quality of governance' can be identified. Our results also show that some of the doubts that have been raised concerning the validity of perception-based governance indicators are less warranted when the indicators are applied exclusively to developing countries. |
| Subjects: | | Aid Allocation Governance Indicators Factor Analysis MCA |
| JEL: | | C38 F35 O10 O51 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin
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