Fungibility And The Flypaper Effect of Project Aid Micro-Evidence For Vietnam

While most economists assume that aid is fungible, most aid donors behave as if it is not. The authors study recipient government responses to development project aid in the context of a specific World Bank-financed project. They estimate the impact of a rural road rehabilitation project in Vietnam...

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Bibliographic Details
Main Author: van de Walle, Dominique
Other Authors: Mu, Ren
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2007
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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653 |a Infrastructure 
653 |a Transport Economics, Policy and Planning 
653 |a Inspection 
653 |a Ministry of Transport 
653 |a Grants 
653 |a Motor Vehicle 
653 |a Costs 
653 |a Communities & Human Settlements 
653 |a Housing and Human Habitats 
653 |a Road Links 
653 |a Transport 
653 |a Length of Roads 
653 |a Road Improvements 
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653 |a Road Maintenance 
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700 1 |a Mu, Ren 
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520 |a While most economists assume that aid is fungible, most aid donors behave as if it is not. The authors study recipient government responses to development project aid in the context of a specific World Bank-financed project. They estimate the impact of a rural road rehabilitation project in Vietnam on the kilometers of roads actually rehabilitated and built. Using local-level survey data collected for this purpose, the authors test whether the evidence supports the standard economic argument that there will be little or no impact on rural roads rehabilitated, given fungibility. They find evidence that, although project aid impacts on rehabilitated road kilometers were less than intended, more roads were built in project areas. The results suggest that there was fungibility within the sector, but that aid largely stuck to that sector