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Controlling Corruption in Development Aid: New Evidence from Contract-Level Data

  • Elizabeth Dávid-Barrett*
  • , Mihály Fazekas
  • , Olli Hellmann
  • , Lili Márk
  • , Ciara McCorley
  • *Corresponding author for this work
  • University of Sussex
  • University of Waikato
  • Central European University

Research output: Contribution to journalArticlepeer-review

Abstract (may include machine translation)

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.

Original languageEnglish
Pages (from-to)481-515
Number of pages35
JournalStudies in Comparative International Development
Volume55
Issue number4
DOIs
StatePublished - Dec 2020

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 1 - No Poverty
    SDG 1 No Poverty

Keywords

  • Corruption
  • Development aid
  • Party systems
  • Public procurement
  • State capacity

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