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' (84 chars) abstract => protected'This study analyzes the empirical link between German bilateral development
      finance and Foreign Direct Investment (FDI) at the sub-national (ADM2) level
      . We construct a unique dataset by merging geo-referenced development aid pr
      ojects— implemented by KfW Development Bank—over more than two decades w
      ith FDI project data. The analysis investigates four research hypotheses, an
      d finds that: (i) development finance activity is positively and significant
      ly associated with FDI inflows; (ii) the positive link is similarly pronounc
      ed in both hard and soft sectors; as well as (iii) irrespective of recipien
      t countries’ income level; and (iv) the positive aid–FDI association app
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      is significantly more likely to be associated with FDI from Germany and the
      EU. Our findings suggest that FDI may be an important channel through which
       development aid simultaneously benefits both recipient—by providing capit
      al and technology—and donor countries, by signaling investment opportuniti
      es for its enterprises.
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      title => protected'Linking KfW-financed aid projects and FDI: global evidence at the sub-nation
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' (84 chars) abstract => protected'This study analyzes the empirical link between German bilateral development
         finance and Foreign Direct Investment (FDI) at the sub-national (ADM2) level
         . We construct a unique dataset by merging geo-referenced development aid pr
         ojects— implemented by KfW Development Bank—over more than two decades w
         ith FDI project data. The analysis investigates four research hypotheses, an
         d finds that: (i) development finance activity is positively and significant
         ly associated with FDI inflows; (ii) the positive link is similarly pronounc
         ed in both hard and soft sectors; as well as (iii) irrespective of recipien
         t countries’ income level; and (iv) the positive aid–FDI association app
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         is significantly more likely to be associated with FDI from Germany and the
         EU. Our findings suggest that FDI may be an important channel through which
          development aid simultaneously benefits both recipient—by providing capit
         al and technology—and donor countries, by signaling investment opportuniti
         es for its enterprises.
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Linking KfW-financed aid projects and FDI: global evidence at the sub-national Level | Rigorous Impact Evaluation - DEval.org
Rigorous Impact Evaluation (RIE) Completed

Linking KfW-financed aid projects and FDI: global evidence at the sub-national Level

Sector (OECD DAC Codes)
Unallocated / Unspecified
Involved Organisations
KfW Development Bank
University of Göttingen
Country
Funding
Other
Region
Global Project
No
Year (Time of endline survey or planned endline survey)
2026
Evaluation Method
Fixed effects

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