The Role of Governance in Determining Foreign Aid Flow Composition
Matthew S. Winters, Gina Martinez
We hypothesize that selective donors will use types of aid over which they have more control when providing assistance to poorly governed countries. We use an original classiﬁcation of project purpose codes in the AidData dataset to categorize aid ﬂows from the period 2004 to 2010. Results from ﬁxed effect and compositional data models provide evidence of selectivity in terms of overall aidﬂows, a tradeoff between technical assistance and programmatic lending, and a tradeoff between social sector and infrastructure projects.