Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129885
Authors: 
Donaubauer, Julian
Nunnenkamp, Peter
Year of Publication: 
2016
Series/Report no.: 
Kiel Working Paper 2034
Abstract: 
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.
Subjects: 
sector-specific aid
aid effectiveness
infrastructure
difference-in-difference-in-differences
JEL: 
F35
O18
Document Type: 
Working Paper

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