Skip to main content
Article thumbnail
Location of Repository

ISSN: 1439-2305Why it pays for aid recipients to take note of the Millennium Challenge Corporation: Other donors do!

By Axel Dreher, Peter Nunnenkamp, Hannes Öhler, Axel Dreher A, Peter Nunnenkamp B and Hannes Öhler C


Abstract: It is widely believed that the Millennium Challenge Corporation (MCC) has grossly fallen short of high expectations raised by the Bush administration in 2002. From the perspective of potential recipient countries, the crucial issue is whether the MCC increased the overall pool of aid resources available to them. We argue that this question extends far beyond the distribution of the limited MCC resources. By employing OLS and treatmenteffects estimations, we assess how other US aid agencies and non-US donors reacted to MCC decisions. We find that positive signaling effects tend to dominate possible substitution effects not only for overall US aid but also for multilateral donors. Regarding other bilateral donors the evidence is mixed

Topics: official development aid, Millennium Challenge Corporation, additionality, signaling, United States, other DAC donors
Year: 2010
OAI identifier: oai:CiteSeerX.psu:
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • (external link)
  • (external link)
  • Suggested articles

    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.