Journal Article

Delegation of implementation in project aid

Date Published

Nov 21, 2020


Silvia Marchesi, Tania Masi


The Review of International Organizations


Marchesi, S., Masi, T. Delegation of implementation in project aid. Rev Int Organ (2020).

Note: A version of this article was previously published as an AidData Working Paper.


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.

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