Jaouadi, Saïd (2011): The reality about aid and governance: the threshold theory.
Download (354kB) | Preview
The aim of this survey is to explain the real impact of aid on governance in the developing countries: including the subsahara and the MENA region during the period 1990-2004 by using the “threshold theory”. Stephen Knack proved that foreign aid had a harmful impact on the governance of the developing countries. But, in this study we used a new econometric approach to test the existence of a threshold and to determine its value. This methodology allowed us to find interesting results in the relation between aid and governance, in the short and in the long run.
|Item Type:||MPRA Paper|
|Original Title:||The reality about aid and governance: the threshold theory|
|English Title:||The reality about aid and governance: the threshold theory|
|Keywords:||foreign aid, governance, threshold, institutions|
|Subjects:||F - International Economics > F3 - International Finance > F35 - Foreign Aid
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O19 - International Linkages to Development ; Role of International Organizations
|Depositing User:||said jaouadi|
|Date Deposited:||14. Sep 2011 17:48|
|Last Modified:||16. Mar 2015 03:54|
BRUCE HANSEN (2000), "Sample splitting and threshold estimation", Econometrica, 68 (3).
CRAIG BURNSIDE and DAVID DOLLAR (1997), "Aid, Policies and Growth", Policy Research paper 1777, World Bank.
CHARLES C. CHANG, EDUARDO FERNANDEZ-ARIAS and LUIS SERVEN, “Measuring Aid Flows, A New Approach”, World Bank, 1998.
Database of the world bank: World Development Indicators.
KARUNA GOMANEE, SOURAFEL GIRMA and OLIVER MORRISSEY (2003), “Searching for aid threshold effects”, Centre for Research in Economic Development and International Trade, Research Paper N°03/15.
STEPHEN KNACK and PHILIP KEEFER, (1995), “Institutions and Economic Performance: Cross-country Tests Using Alternative Institutional Measures”, Economics and politics 7 (3): 207 – 227.
SOPHAL EAR (2002), "Has more aid worsened Governance since 1995? A large-N study of six quality of governance indicators", Department of Political Science & Department of Agricultural and Resource Economics, University of California at Berkley.
STEPHEN KNACK (1999), "Aid dependence and the quality of governance: A cross country empirical analysis", IRIS University of Maryland.
HENRIK HANSEN and CARL JOHAN DALGAARD (2000), “On Aid, Growth and good policies”, CREDIT research paper n°00/17.
HENRIK HANSEN and FINN TARP (2000), “Aid effectiveness disputed”, journal of international development, April, 12:3, pp: 375 – 398.
Steven RADELET (2003), “Challenging Foreign Aid:A Policymaker’s Guide to the Millennium Challenge Account”, Washington: Center for Global Development.
WILLIAN EASTERLY, ROSS LEVINE AND DAVID ROODMAN (2003), “New data, new doubts : Revisiting Aid, policies and growth”, working paper n°26, Center for Global Development.