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Aid Fragmentation and Corruption

Travers Barclay Child¹; Austin L. Wright²; Yun Xiao³

¹ SKK Graduate School of Business, Sungkyunkwan University (SKKU), and China Europe International Business School (CEIBS) · ² University of Chicago · ³ University of Gothenburg

Abstract Aid fragmentation—the simultaneous operation of multiple development agencies in one setting—has long raised concerns about coordination challenges and opportunities for corruption. Leveraging unique data on project delivery in Afghanistan, we present the first microlevel empirical analysis of aid fragmentation. We find that aid delivered by a single donor can significantly reduce corruption. Projects delivered under conditions of aid fragmentation, by contrast, can facilitate corruption. We find evidence for a theoretical mechanism linking infrastructure and physical goods with waste and leakage. Our results clarify the policy losses tied to fragmentation, yielding insights for combating misappropriation of aid.

DOI

10.1162/rest_a_01458

Volume

108 (3)

Pages

681-695

Language

en

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BibTeX

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