IDEAS home Printed from https://ideas.repec.org/a/eee/epplan/v68y2018icp233-242.html
   My bibliography  Save this article

An exploration of individual-level wage effects of foreign aid in developing countries

Author

Listed:
  • Koch, Dirk-Jan
  • Schulpen, Lau

Abstract

The key research question that this article aims to respond to is: what are the individual-level effects of wages financed by development assistance? Our hypothesis is that these effects are substantial and overall positive, depending on the level of analysis. This article theorizes about unintended wage effects at the individual level, spillover effects, and those at the macro level, yet focuses its research on individual-level effects. The empirical part consists of two case studies. One takes a sample of grants from a donor agency, the Netherlands Ministry of Foreign Affairs, as a starting point, following these grants through the aid chain to determine local staffing costs. The other case study consists of a comparative wage analysis in a developing country, the Democratic Republic of Congo. As this field of research is rather fresh, instead of answering relevant questions with respect to wage effects, this study merely aims to identify questions that merit further research.

Suggested Citation

  • Koch, Dirk-Jan & Schulpen, Lau, 2018. "An exploration of individual-level wage effects of foreign aid in developing countries," Evaluation and Program Planning, Elsevier, vol. 68(C), pages 233-242.
    • Handle: RePEc:eee:epplan:v:68:y:2018:i:c:p:233-242
    DOI: 10.1016/j.evalprogplan.2017.09.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0149718917302811
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.evalprogplan.2017.09.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Martens,Bertin & Mummert,Uwe & Murrell,Peter & Seabright,Paul, 2008. "The Institutional Economics of Foreign Aid," Cambridge Books, Cambridge University Press, number 9780521055390.
    2. Holger Görg & David Greenaway, 2016. "Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 9, pages 163-189, World Scientific Publishing Co. Pte. Ltd..
    3. Martens,Bertin & Mummert,Uwe & Murrell,Peter & Seabright,Paul, 2002. "The Institutional Economics of Foreign Aid," Cambridge Books, Cambridge University Press, number 9780521808187.
    4. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    5. Beata S. Javorcik, 2015. "Does FDI Bring Good Jobs to Host Countries?," The World Bank Research Observer, World Bank, vol. 30(1), pages 74-94.
    6. Riddell, Roger C., 2008. "Does Foreign Aid Really Work?," OUP Catalogue, Oxford University Press, number 9780199544462.
    7. Swidler, Ann & Watkins, Susan Cotts, 2009. ""Teach a Man to Fish": The Sustainability Doctrine and Its Social Consequences," World Development, Elsevier, vol. 37(7), pages 1182-1196, July.
    8. Banks, Nicola & Hulme, David & Edwards, Michael, 2015. "NGOs, States, and Donors Revisited: Still Too Close for Comfort?," World Development, Elsevier, vol. 66(C), pages 707-718.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qian, Nancy & Deserranno, Erika, 2020. "Aid Crowd-Out: The Effect of NGOs on Government-Provided Public Services," CEPR Discussion Papers 14755, C.E.P.R. Discussion Papers.
    2. Simplice A. Asongu & Hillary C. Ezeaku, 2020. "Aid Grants vs. Technical Cooperation Grants: Implications for Inclusive Growth in Sub-Saharan Africa, 1984-2018," Research Africa Network Working Papers 20/091, Research Africa Network (RAN).
    3. Erika Deserranno & Aisha Nansamba & Nancy Qian, 2020. "The Unintended Consequences of NGO-Provided Aid on Government Services in Uganda," NBER Working Papers 26928, National Bureau of Economic Research, Inc.
    4. Dirk-Jan Koch & Jolynde Vis & Maria van der Harst & Elric Tendron & Joost de Laat, 2021. "Assessing International Development Cooperation: Becoming Intentional about Unintended Effects," Sustainability, MDPI, vol. 13(21), pages 1-26, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Victor, David G., 2013. "Foreign Aid for Capacity-Building to Address Climate Change: Insights and Applications," WIDER Working Paper Series 084, World Institute for Development Economic Research (UNU-WIDER).
    2. Sara Amoroso & Pietro Moncada-Paternò-Castello, 2018. "Inward Greenfield FDI and Patterns of Job Polarization," Sustainability, MDPI, vol. 10(4), pages 1-20, April.
    3. Teixeira, Aurora A.C. & Tavares-Lehmann, Ana Teresa, 2014. "Human capital intensity in technology-based firms located in Portugal: Does foreign ownership matter?," Research Policy, Elsevier, vol. 43(4), pages 737-748.
    4. Asteris Huliaras & Sotiris Petropoulos, 2016. "European Money in Greece: In Search of the Real Impact of EU Structural Funds," Journal of Common Market Studies, Wiley Blackwell, vol. 54(6), pages 1332-1349, November.
    5. Robert K. Fleck & Christopher Kilby, 2006. "World Bank Independence: A Model and Statistical Analysis of US Influence," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 224-240, May.
    6. Knack, Stephen, 2013. "Aid and donor trust in recipient country systems," Journal of Development Economics, Elsevier, vol. 101(C), pages 316-329.
    7. Ronelle Burger & Indraneel Dasgupta & Trudy Owens, 2011. "A Model of NGO Regulation with an Application to Uganda," Working Papers 22/2011, Stellenbosch University, Department of Economics.
    8. James Copestake & Richard Williams, 2014. "Political-Economy Analysis, Aid Effectiveness and the Art of Development Management," Development Policy Review, Overseas Development Institute, vol. 32(1), pages 133-153, January.
    9. Claude Ménard & Mary M. Shirley, 2010. "The Contribution of Douglass North to New Institutional Economics," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00654327, HAL.
    10. Sèna Kimm Gnangnon, 2022. "Does Poverty Matter for Tax Revenue Performance in Developing Countries?," South Asian Journal of Macroeconomics and Public Finance, , vol. 11(1), pages 7-38, June.
    11. Knack, Stephen & Rahman, Aminur, 2007. "Donor fragmentation and bureaucratic quality in aid recipients," Journal of Development Economics, Elsevier, vol. 83(1), pages 176-197, May.
    12. Hicks, Robert L. & Parks, Bradley C. & Tierney, Michael J., 2005. "Explaining the Allocation of Bilateral and Multilateral Environmental Aid to Developing Countries," 2005 Annual meeting, July 24-27, Providence, RI 19346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Gretchen Helmke & Elena V. McLean, 2014. "Inducing independence: A strategic model of World Bank assistance and legal reform," Conflict Management and Peace Science, Peace Science Society (International), vol. 31(4), pages 383-405, September.
    14. Nicola Cortinovis & Zhiling Wang & Hengky Kurniawan, 2021. "Industrial Relatedness in MNE Spillovers over Geographical Space," Papers in Evolutionary Economic Geography (PEEG) 2111, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2021.
    15. Cormac Ó Gráda, 2007. "Making Famine History," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 5-38, March.
    16. Justin Paul & Gurmeet Singh, 2017. "The 45 years of foreign direct investment research: Approaches, advances and analytical areas," The World Economy, Wiley Blackwell, vol. 40(11), pages 2512-2527, November.
    17. Pedro Sánchez-Sellero & Jorge Rosell-Martínez & José Manuel García-Vázquez, 2014. "Spillovers from Foreign Direct Investment in Spanish Manufacturing Firms," Review of International Economics, Wiley Blackwell, vol. 22(2), pages 342-351, May.
    18. Annalisa Prizzon & Romilly Greenhill & Shakira Mustapha, 2017. "An ‘age of choice’ for external development finance? Evidence from country case studies," Development Policy Review, Overseas Development Institute, vol. 35, pages 29-45, July.
    19. Balla, Eliana & Reinhardt, Gina Yannitell, 2008. "Giving and Receiving Foreign Aid: Does Conflict Count?," World Development, Elsevier, vol. 36(12), pages 2566-2585, December.
    20. Rune Jansen Hagen, 2018. "Losing concentration? Lessons from a Swedish aid policy reform," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 984-1003, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:epplan:v:68:y:2018:i:c:p:233-242. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/evalprogplan .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.