Does foreign aid help or hinder the institutional quality of the recipient country? new evidence from the oic countries

Mohammad Ashraful Ferdous Chowdhury; Mohamed Ariff; Mansur Masih; Izlin Ismail

doi:10.1142/S0217590819420037

Does foreign aid help or hinder the institutional quality of the recipient country? new evidence from the oic countries

Mohammad Ashraful Ferdous Chowdhury
, Mohamed Ariff
, Mansur Masih
, Izlin Ismail

Research output: Contribution to journal › Article › peer-review

4 Scopus citations

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.

Original language	English
Pages (from-to)	189-218
Number of pages	30
Journal	Singapore Economic Review
Volume	67
Issue number	1
DOIs	https://doi.org/10.1142/S0217590819420037
State	Published - 1 Mar 2022
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2022 World Scientific Publishing Company.

Keywords

Foreign aid
OIC countries
institutional quality
quantile regression
system GMM

ASJC Scopus subject areas

Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1142/S0217590819420037

Cite this

@article{8cef6c2a9e6f48fc9660d4c2c24d9169,

title = "Does foreign aid help or hinder the institutional quality of the recipient country? new evidence from the oic countries",

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, OIC countries, institutional quality, quantile regression, system GMM",

author = "Chowdhury, \{Mohammad Ashraful Ferdous\} and Mohamed Ariff and Mansur Masih and Izlin Ismail",

note = "Publisher Copyright: {\textcopyright} 2022 World Scientific Publishing Company.",

year = "2022",

month = mar,

day = "1",

doi = "10.1142/S0217590819420037",

language = "English",

volume = "67",

pages = "189--218",

journal = "Singapore Economic Review",

issn = "0217-5908",

publisher = "World Scientific Publishing Co. Pte Ltd",

number = "1",

}

TY - JOUR

T1 - Does foreign aid help or hinder the institutional quality of the recipient country? new evidence from the oic countries

AU - Chowdhury, Mohammad Ashraful Ferdous

AU - Ariff, Mohamed

AU - Masih, Mansur

AU - Ismail, Izlin

PY - 2022/3/1

Y1 - 2022/3/1

N2 - 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.

AB - 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.

KW - Foreign aid

KW - OIC countries

KW - institutional quality

KW - quantile regression

KW - system GMM

UR - https://www.scopus.com/pages/publications/85074144185

U2 - 10.1142/S0217590819420037

DO - 10.1142/S0217590819420037

M3 - Article

AN - SCOPUS:85074144185

SN - 0217-5908

VL - 67

SP - 189

EP - 218

JO - Singapore Economic Review

JF - Singapore Economic Review

IS - 1

ER -

Does foreign aid help or hinder the institutional quality of the recipient country? new evidence from the oic countries

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

Fingerprint

Cite this