Journal Article

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


  • Dreher
  • A.
  • Nunnenkamp
  • P.
  • Öhler
  • H.
Publication Date

We empirically analyze how other aid agencies, within and outside the United States, reacted to the Millennium Challenge Corporation (MCC). We find that positive signaling effects dominate possible substitution effects. Striving for MCC eligibility thus pays.


JEL Classification

Key Words

  • Millennium Challenge Corporation
  • official development aid