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World Bank Independence: A Model and Statistical Analysis of U.S. Influence

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Author Info
Fleck, Robert K. () (Montana State University Department of Agricultural Economics and Economics)
Kilby, Christopher () (Vassar College Department of Economics)
Fleck, Robert K.

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Abstract

This paper develops a model to test whether World Bank lending caters to U.S. interests. We use country-level panel data to examine the geographic distribution of World Bank lending to 110 countries from 1968 to 2002. After controlling for country characteristics expected to influence the distribution of lending in a manner consistent with the World Bank’s charter and stated allocation mechanisms, we introduce variables reflecting U.S. interests. The empirical results are consistent with a significant U.S. influence, but one which varies across presidential administrations. These findings have important implications because donor influence may reduce the credibility, and hence the development effectiveness, of multilateral aid organizations.

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Paper provided by Vassar College Department of Economics in its series Vassar College Department of Economics Working Paper Series with number 53.

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Date of creation: Oct 2001
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Handle: RePEc:vas:papers:53

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  13. Thomas Andersen & Henrik Hansen & Thomas Markussen, 2006. "US politics and World Bank IDA-lending," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(5), pages 772-794, July. [Downloadable!] (restricted)
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  14. Trumbull, William N & Wall, Howard J, 1994. "Estimating Aid-Allocation Criteria with Panel Data," Economic Journal, Royal Economic Society, vol. 104(425), pages 876-82, July. [Downloadable!] (restricted)
  15. William Easterly, 2003. "Can Foreign Aid Buy Growth?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 23-48, Summer. [Downloadable!] (restricted)
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  18. Enzo Grilli & Markus Riess, 1992. "EC aid to associated countries: distribution and determinants," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 128(2), pages 202-220, June. [Downloadable!] (restricted)
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  22. Noel, Alain & Therien, Jean-Philippe, 1995. "From Domestic to International Justice: The Welfare State and Foreign Aid," International Organization, MIT Press, vol. 49(3), pages 523-53, Summer.
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  27. Dudley, Leonard & Montmarquette, Claude, 1976. "A Model of the Supply of Bilateral Foreign Aid," American Economic Review, American Economic Association, vol. 66(1), pages 132-42, March. [Downloadable!] (restricted)
  28. Fleck, Robert K. & Kilby, Christopher & Fleck, Robert K., 1998. "Foreign Aid and Domestic Politics: Voting in Congress and the Allocation of USAID Contracts Across Congressional Districts," Vassar College Department of Economics Working Paper Series 44, Vassar College Department of Economics, revised Dec 1999.
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  34. Fleck, Robert K. & Kilby, Christopher, 2005. "How Do Political Changes Influence U.S. Bilateral Aid Allocations? Evidence from Panel Data," Vassar College Department of Economics Working Paper Series 67, Vassar College Department of Economics. [Downloadable!]
    Other versions:
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Rainer Thiele & Peter Nunnenkamp & Axel Dreher, 2006. "Sectoral Aid Priorities: Are Donors Really Doing their Best to Achieve the Millennium Development Goals?," Working papers 06-124, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
    Other versions:
  2. Mariarosaria Agostino, 2004. "Conditionality, Commitment and Investment Response in LDCs," Economics Working Papers 2004-10, School of Economics and Management, University of Aarhus. [Downloadable!]
  3. Axel Dreher & Jan-Egbert Sturm, 2006. "Do IMF and World Bank Influence Voting in the UN General Assembly?," Working papers 06-137, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
    Other versions:
  4. Hefeker, Carsten, 2005. "Project Aid or Budget Aid? The Interests of Governments and Financial Institutions," Proceedings of the German Development Economics Conference, Kiel 2005 19, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
    Other versions:
  5. J Harrigan & C Wang & H El-Said, 2004. "The Economic and Politics Determinants of IMF and World Bank Lending in the Middle East and North Africa," The School of Economics Discussion Paper Series 0411, Economics, The University of Manchester. [Downloadable!]
    Other versions:
  6. Anwar, Mumtaz, 2006. "The Political Economy Of International Financial Institutions’ Lending To Pakistan," MPRA Paper 5601, University Library of Munich, Germany, revised 01 Dec 2006. [Downloadable!]
  7. Fleck, Robert K. & Kilby, Christopher, 2005. "How Do Political Changes Influence U.S. Bilateral Aid Allocations? Evidence from Panel Data," Vassar College Department of Economics Working Paper Series 67, Vassar College Department of Economics. [Downloadable!]
    Other versions:
  8. Jean-Paul Azam & Véronique Thelen, 2008. "The roles of foreign aid and education in the war on terror," Public Choice, Springer, vol. 135(3), pages 375-397, June. [Downloadable!] (restricted)
  9. Azam, Jean-Paul & Delacroix, Alexandra, 2004. "Aid and the Delegated Fight against Terrorism," IDEI Working Papers 324, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jul 2005. [Downloadable!]
  10. Azam, Jean-Paul & Thelen, Véronique, 2007. "The Roles of Foreign Aid and Education in the War on Terror," IDEI Working Papers 449, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  11. Kilby, Christopher, 2005. "Donor Influence in MDBs: the Case of the Asian Development Bank," Vassar College Department of Economics Working Paper Series 70, Vassar College Department of Economics. [Downloadable!]
  12. Thiele, Rainer & Nunnenkamp, Peter & Dreher, Axel, 2007. "Do Donors Target Aid in Line with the Millennium Development Goals? A Sector Perspective of Aid Allocation," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  13. Kilby, Christopher, . "The Political Economy of Conditionality: An Empirical Analysis of World Bank Enforcement," Vassar College Department of Economics Working Paper Series 92, Vassar College Department of Economics. [Downloadable!]
  14. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008. "Does US aid buy UN general assembly votes? A disaggregated analysis," Public Choice, Springer, vol. 136(1), pages 139-164, July. [Downloadable!] (restricted)
    Other versions:
  15. Azam, Jean-Paul & Berlinschi, Ruxanda, 2008. "The Aid-Migration of Trade-Off," IDEI Working Papers 538, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
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