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24.07.2021 | History

3 edition of Fungibility and the impact of development assistance found in the catalog.

Fungibility and the impact of development assistance

evidence from Vietnams health sector

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Published by Administrator in World Bank

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  • United States
    • Subjects:
    • World Bank


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        StatementWorld Bank
        PublishersWorld Bank
        Classifications
        LC Classifications2008
        The Physical Object
        Paginationxvi, 79 p. :
        Number of Pages54
        ID Numbers
        ISBN 10nodata
        Series
        1
        2Policy research working papers (Online) -- 4800.
        3Policy research working paper -- 4800

        How can the impact of aid be estimated in the presence of fungibility? And how far does fungibility reduce its benefits? These questions are analyzed in a context where a donor wants to target its efforts on a specific sector and specific geographic areas.A traditional differences-in-differences method comparing the change in outcomes between the target and nontarget areas before and after the project risks misestimating the projects benefits.The paper develops an alternative estimation method in which intersectoral fungibility reduces project benefits insofar as government spending has a smaller impact in the sector to which the funds leak than in the target sector, while intrasectoral fungibility reduces benefits insofar as the donor is able to leverage productivity increases in government spending in the target areas.The methods are applied to two contemporaneous World Bank health projects that set out to target assistance on approximately one-half of Vietnams provinces.Aid is not apparently fungible between Vietnams health sector and other sectors, but is fungible across provinces within the health sector.Differences-in-differences yield an insignificant impact on infant mortality, while the use of the new method yields a statistically significant impact of around 4 per 1000 live births.The results, however, are ambiguous on the costs associated with intrasectoral fungibility. --World Bank web site. File Size: 8MB.


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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. Clearly control of how ODA is spent will improve country ownership of the aid process. One persistent concern raised during discussions of whether aid effectively promotes the goals of donors is fungibility, that is; the possibility that aid is used in ways not intended by donors when disbursing the funds.

" ," 1875, Kiel Institute for the World Economy IfW. A traditional differences-in-differences method comparing the change in outcomes between the target and nontarget areas before and after the project risks misestimating the project's benefits.

If donors coordinate their actions they can use these countervailing incentives to eliminate part of the fungibility problem.

The implications of foreign aid fungibility for development assistance

3, Fondazione Eni Enrico Mattei. By mixing modalities in this way donors can incentivize recipient governments to self-select into the most appropriate aid modality.

" ," 5374, The World Bank., edition 1, volume 4, chapter 59, pages 3787-3846, Elsevier. 49 10pages 1309-1323, November. 16 3pages 257-273, March.

Barriers to effective development assistance for health

" ," wp-2014-082, World Institute for Development Economic Research UNU-WIDER. " ," 50, JICA Research Institute. 12 1pages 29-58, January. The apparent fungibility of aid is a challenge to the evaluation of donor-funded development projects, requiring a comparison of the observed outcomes with the outcomes that would have occurred if the project had not gone ahead.

23 2pages 129-140, February.