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Controlling Corruption in Development Aid:New Evidence from Contract-Level Data
Title / Series / Name
Studies in Comparative International Development
Publication Volume
55
Publication Issue
4
Pages
Editors
Keywords
Corruption
Development aid
Party systems
Public procurement
State capacity
Development
Sociology and Political Science
Political Science and International Relations
SDG 1 - No Poverty
Development aid
Party systems
Public procurement
State capacity
Development
Sociology and Political Science
Political Science and International Relations
SDG 1 - No Poverty
URI
https://hdl.handle.net/20.500.14018/28363
Abstract
Following scandals about corruption in foreign aid, and in a political climate that increasingly questions the legitimacy of development assistance, donors are under pressure to better control how their funds are spent. However, there is little evidence on precisely how to control corruption in development aid. This article assesses under which conditions donor regulations are successful in controlling corruption in aid spent by national governments through procurement tenders. The article analyses data on donor-funded procurement contracts in 100+ countries in 1998–2008 and uses ‘single bid submitted in a competitive tender’ as a corruption risk indicator. Applying a contract-level propensity score matching and regression analysis, it finds that an intervention which increases donor oversight and widens access to tenders is effective in reducing corruption risks: lowering single bidding on competitive markets by 3.6–4.3 percentage points. This effect is greater in countries with low-state capacity.
Topic
Publisher
Place of Publication
Type
Journal article
Date
2020-12
Language
ISBN
Identifiers
10.1007/s12116-020-09315-4