Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57255
Authors: 
Knoll, Martin
Zloczysti, Petra
Year of Publication: 
2011
Series/Report no.: 
DIW Discussion Papers 1148
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 perceived 'participatory dimension of governance' and the perceived '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
United States
JEL: 
C38
F35
O10
O51
Document Type: 
Working Paper

Files in This Item:
File
Size
512.63 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.