The Effect of Foreign Aid on Sub-national Development
A Quantile Regression Approach
This ePaper investigates the non-linear effects of geo-referenced World Bank aid projects on economic development at the sub-national level, measured as night-time luminosity. The data framework is based on a grid cell structure at a 0.5 x 0.5 decimal degree resolution, covering approximately 10,600 grid cells across 54 African countries, over the period of 1992 to 2014. This approach addresses endogeneity concerns associated with sample selection and reverse causality. Using a fixed effects q...
Éditeur : Graduate Institute Publications
Lieu d’édition : Genève
Publication sur OpenEdition Books : 7 septembre 2020
ISBN numérique : 978-2-940600-20-5
DOI : 10.4000/books.iheid.7797
Collection : eCahiers de l’Institut | 32
Année d’édition : 2020
This ePaper investigates the non-linear effects of geo-referenced World Bank aid projects on economic development at the sub-national level, measured as night-time luminosity. The data framework is based on a grid cell structure at a 0.5 x 0.5 decimal degree resolution, covering approximately 10,600 grid cells across 54 African countries, over the period of 1992 to 2014. This approach addresses endogeneity concerns associated with sample selection and reverse causality. Using a fixed effects quantile regression approach, I estimate the impact of foreign aid at distinct levels of development within countries. Overall, the results suggest a positive and statistically significant effect of aid on night-time luminosity, with the largest impact observed within relatively poorer grid cells. In addition, there is evidence of spill-over aid effects from neighbouring grid cells. These findings are however sensitive to different model specifications and variable transformations.
We extend our heartfelt thanks to the Vahabzadeh Foundation for financially supporting the publication of best works by young researchers of the Graduate Institute, giving a priority to those who have been awarded academic prizes for their master’s dissertations.
Dumebi Ochem currently works as an International Consultant at the International Trade Centre (ITC) in Geneva, Switzerland focusing on trade, value chain development and economic growth.
Dumebi holds an MSc in International Economics from the Graduate Institute of International and Development Studies, Geneva, and a BSc in Economics from University College London (UCL), where she specialized in Development Economics. Her research interests include economic development, inequality and economic policy.
Born in Italy, Dumebi has lived, studied and worked in different countries – Italy, UK, South Africa, Ethiopia, Nigeria, and Switzerland. She is fluent in English and Italian with a good knowledge of Spanish. Outside of work, Dumebi is passionate about music and is an accomplished pianist.
Le texte seul est utilisable sous licence Creative Commons - Attribution - Pas d'Utilisation Commerciale - Pas de Modification 4.0 International - CC BY-NC-ND 4.0. Les autres éléments (illustrations, fichiers annexes importés) sont « Tous droits réservés », sauf mention contraire.
The Development of International Refugee Protection through the Practice of the UN Security Council
Christiane Ahlborn
2010
The SWIFT Affair
Swiss Banking Secrecy and the Fight against Terrorist Financing
Johannes Köppel
2011
The Evolving Patterns of Lebanese Politics in Post-Syria Lebanon
The Perceptions of Hizballah among Members of the Free Patriotic Movement
Fouad Ilias
2010
La justice internationale à l'épreuve du terrorisme
Défis, enjeux et perspectives concernant la Commission d'enquête internationale indépendante (UNIIIC) et le Tribunal spécial pour le Liban
Sébastien Moretti
2009
Aut Dedere, aut Judicare: The Extradite or Prosecute Clause in International Law
Claire Mitchell
2009
The Development of International Refugee Protection through the Practice of the UN Security Council
Christiane Ahlborn
2010
The SWIFT Affair
Swiss Banking Secrecy and the Fight against Terrorist Financing
Johannes Köppel
2011
The Evolving Patterns of Lebanese Politics in Post-Syria Lebanon
The Perceptions of Hizballah among Members of the Free Patriotic Movement
Fouad Ilias
2010
La justice internationale à l'épreuve du terrorisme
Défis, enjeux et perspectives concernant la Commission d'enquête internationale indépendante (UNIIIC) et le Tribunal spécial pour le Liban
Sébastien Moretti
2009
Aut Dedere, aut Judicare: The Extradite or Prosecute Clause in International Law
Claire Mitchell
2009
