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2021 ; 16
(3
): 655-687
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Delegation of implementation in project aid
#MMPMID38624514
Marchesi S
; Masi T
Rev Int Organ
2021[]; 16
(3
): 655-687
PMID38624514
show ga
In this paper we explore the factors that determine delegation of implementation
in project aid. In particular, focusing on the importance of informational
asymmetry between levels of government, we empirically assess whether this choice
is influenced by the relative importance of the local information at the
recipient country level. Moreover, we test whether this choice can in turn
influence project performance. Using information on more than 5800 World Bank
projects for the period 1995-2014, and controlling for characteristics at both
country and project level, we find that transparency does influence the
probability that a project is implemented locally rather than nationally. More
specifically, a one standard deviation decline in transparency increases the
probability of a locally implemented project by three percentage points. We also
find that a local implementing agency may increase the probability of a
successful project only up to a certain level of a country's transparency.