This paper shows that the increased policy-selectivity of aid allocations observed in recent years provides recipient countries an incentive to improve policies. The paper estimates that a change in the World Banks Country Policy and Institutional Assessment policy index from 1.5 to 2 for a...

What kind of technical assistance and capacity building benefits do developing countries enjoy if they sign a free trade agreement (FTA) with developed countries? This is a frequently asked question among developing country officials involved in FTA policymaking. While we tend to normatively...