Abstract

http://ssrn.com/abstract=2235078
 
 

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The Effectiveness of Aid in Improving Regulations – Empirical Evidence and the Drivers of Change in Rwanda


Matthias Busse


Ruhr-University Bochum; HWWI - Hamburg Institute of International Economics

Ruth Hoekstra


Ruhr Universität Bochum - Faculty of Economics

Robert Osei


University of Ghana - Institute of Statistical, Social and Economic Research (ISSER)

March 18, 2013


Abstract:     
The paper assesses the impact of foreign aid on the change in the quality of regulations, and identifies the drivers of this change in a case study on Rwanda. In the empirical analysis, we find that highly targeted Aid for Business has a significantly positive impact on regulations across developing countries, but we do not find any effects for overall aid or aid directed at broad governance areas. In the country case study, we depart from Rwanda’s excellent regulatory performance to explain how aid is effective in changing the regulatory environment, driven by the country’s strong political leadership and its singular institutional history.

Number of Pages in PDF File: 33

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Date posted: March 20, 2013  

Suggested Citation

Busse, Matthias and Hoekstra, Ruth and Osei, Robert, The Effectiveness of Aid in Improving Regulations – Empirical Evidence and the Drivers of Change in Rwanda (March 18, 2013). Available at SSRN: http://ssrn.com/abstract=2235078 or http://dx.doi.org/10.2139/ssrn.2235078

Contact Information

Matthias Busse (Contact Author)
Ruhr-University Bochum ( email )
Faculty of Management and Economics, GC 3/145
D-44780 Bochum, DE 44780
Germany
HWWI - Hamburg Institute of International Economics
Heimhuder Str. 71
Hamburg, 20148
Germany
Ruth Hoekstra
University of Bochum - Faculty of Economics ( email )
Ruhr University of Bochum
Faculty of Economics
D-44780 Bochum, DE 44780
Germany
Robert Osei
University of Ghana - Institute of Statistical, Social and Economic Research (ISSER)
P.O BOX LG 74
Legon
Ghana
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