AidData Working Paper

Implementation Level in World Bank Projects: National vs. Local Allocation of Power

Date Published

Jul 24, 2018

Authors

Silvia Marchesi, Tania Masi

Publisher

Citation

Marchesi, Silvia, and Tania Masi. Implementation Level in World Bank Projects: National vs. Local Allocation of Power. AidData Working Paper #60. Williamsburg, VA: AidData at William & Mary.

AidData Working Paper

Implementation Level in World Bank Projects: National vs. Local Allocation of Power

Date Published

Jul 24, 2018

Authors

Silvia Marchesi, Tania Masi

Citation

Marchesi, Silvia, and Tania Masi. Implementation Level in World Bank Projects: National vs. Local Allocation of Power. AidData Working Paper #60. Williamsburg, VA: AidData at William & Mary.

In this paper we explore the factors that determine the level at which World Bank projects are implemented. 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. Using an AidData dataset that provides 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 that a World Bank project will be implemented locally by up to 3 percent.

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