The Localized Geography of Development Assistance: A Disaggregated Grid Cell Analysis
Final Report Abstract
This research project explores various aspects of the impact and distribution of World Bank foreign aid at a disaggregated, local level. The first study analyzes the relationship between foreign aid and local conflict dynamics in Africa, using highly granular geo-referenced data. The results indicate that while aid significantly affects conflict outcomes, its impact varies over time and across different types of conflict events. The second study investigates how foreign aid influences local economic development, with a focus on variation across countries, sectors, and time periods. The findings reveal substantial heterogeneity: the effectiveness of aid depends strongly on where, how, and in what sector it is implemented. These insights underscore the complexity of the aid-development nexus and point to the need for more tailored and context-sensitive policy interventions. The third study examines the spatial allocation of aid projects and finds that aid tends to flow to areas with better infrastructure and higher existing development levels, rather than to the most disadvantaged regions. Political factors, such as proximity to political elites, also influence allocation decisions. These patterns raise concerns about the efficiency and equity of aid distribution, suggesting that need is not always the primary determinant.
Publications
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Heterogeneous Effects of Foreign aid on Local Economic Development. Carl von Ossietzky Universität Oldenburg, Department of Economics, Working Paper No. V-448-24
Bitzer, J., Dannemann, B. C. & Gören, E.
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Foreign Aid and Local Conflict Dynamics: A Monthly Grid-Cell-Level Analysis in Africa. Carl von Ossietzky Universität Oldenburg, Department of Economics, Working Paper No. V-452-25
Bitzer, J., Dannemann, B. C. & Gören, E.
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Where Does the Money Go? Spatial Patterns in the Distribution of World Bank Foreign Aid Projects. Carl von Ossietzky Universität Oldenburg, Department of Economics, Working Paper No. V-451-25
Dannemann, B. C. & Gören, E.
