Publication:
Does foreign aid help or hinder the institutional quality of the recipient country? New evidence from the OIC countries
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Date
2022
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Abstract
This study examines the impact of foreign aid on the institutional quality (IQ) of the OIC countries. Using the data of OIC countries for the three-year average period from 1991 to 2016, the system GMM finds that aid in general deteriorates the IQ for the aid recipient countries. However, quantile regression suggests that the negative impact of foreign aid on institutional quality (IQ) is relatively greater in the countries where the existing quality of institution is poor. The findings of the study suggest that improving the existing capacity is essential for reaping the optimum benefit of foreign aid on institutional development.
Keywords
Foreign aid , Institutional quality , OIC countries , System GMM , Quantile regression
Citation
Chowdhury, M. A. F., Abdul Kareem, M. A., Mohammed Masih, A. M., & Ismail, I. (2022). Does foreign aid help or hinder the institutional quality of the recipient country? New evidence from the OIC countries. The Singapore Economic Review, 67 (1), pp. 189-218.
Publisher
World Scientific
Publication status: Published online on 24 October 2019. Full text not available from this repository.