DOES FOREIGN AID HELP OR HINDER THE INSTITUTIONAL QUALITY OF THE RECIPIENT COUNTRY? NEW EVIDENCE FROM THE OIC COUNTRIES-Reference-Cited by-同舟云学术

DOES FOREIGN AID HELP OR HINDER THE INSTITUTIONAL QUALITY OF THE RECIPIENT COUNTRY? NEW EVIDENCE FROM THE OIC COUNTRIES

Published:2019-09-15 Issue: Volume: Page:1-30
ISSN:0217-5908
Container-title:The Singapore Economic Review
language:en
Short-container-title:Singapore Econ. Rev.

Author:

CHOWDHURY MOHAMMAD ASHRAFUL FERDOUS¹,ARIFF MOHAMED²,MASIH MANSUR³^ORCID,ISMAIL IZLIN⁴

Affiliation:

1. INCEIF, Kuala Lumpur, Malaysia and Department of Business Administration, Shahjalal University of Science & Technology, Sylhet, Bangladesh

2. Emeritus Professor, INCEIF, Kuala Lumpur, Malaysia

3. Senior Professor, Finance/Islamic Finance, UniKL Business School, Kampung Baru, 50300 Kuala Lumpur, Malaysia

4. Senior Lecturer, Department of Finance & Banking, University of Malaya, Malaysia

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.

Funder

Ministry of Higher Education, Malaysia

Publisher

World Scientific Pub Co Pte Lt

Subject

Economics and Econometrics

Link

https://www.worldscientific.com/doi/pdf/10.1142/S0217590819420037

Reference77 articles.

1. The effectiveness of aid on savings and investment in Sub-Saharan Africa: do volatility and institutional quality matter?

2. Benchmarking objectives of Shari'ah (Islamic law): index and its performance in select OIC countries

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