Journal article

Authors list: Hemmer, HR; Lorenz, A

Publication year: 2003

Pages: 507-549

Journal: Review of World Economics

Volume number: 139

Issue number: 3

ISSN: 1610-2878

eISSN: 1610-2886

DOI Link: https://doi.org/10.1007/BF02659673

Publisher: Springer

Abstract: 
This paper explores the causes of success or failure of German bilateral financial aid, using data on 1,003 Financial Cooperation (FC) projects and programs performed by the Kreditanstalt fur Wiederaufbau (KfW). The authors find that the success or failure of financial aid loans disbursed under FC depends on project characteristics and macroeconomic conditions in the recipient country. Supervision time is also highly negatively correlated with the probability of success. While the relationship disappears once endogeneity is taken into account, the existence of an institutional bias toward a disproportionate allocation of supervision resources in unsuccessful projects cannot be rejected. These results show that some recent evidence on multilateral policy-based aid holds also for the case of German bilateral project-based aid.

Harvard Citation style: Hemmer, H. and Lorenz, A. (2003) What determines the success or failure of German bilateral financial aid?, Weltwirtschaftliches Archiv = Review of world economics, 139(3), pp. 507-549. https://doi.org/10.1007/BF02659673

APA Citation style: Hemmer, H., & Lorenz, A. (2003). What determines the success or failure of German bilateral financial aid?. Weltwirtschaftliches Archiv = Review of world economics. 139(3), 507-549. https://doi.org/10.1007/BF02659673