The reality about aid and governance: the threshold theory
AbstractThe 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33387.
Date of creation: 10 Feb 2011
Date of revision: 01 Apr 2011
foreign aid; governance; threshold; institutions;
Find related papers by JEL classification:
- F35 - International Economics - - International Finance - - - Foreign Aid
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-22 (All new papers)
- NEP-ARA-2011-09-22 (MENA - Middle East & North Africa)
- NEP-CWA-2011-09-22 (Central & Western Asia)
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Policy Research Working Paper Series
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- Bruce E. Hansen, 1996.
"Sample Splitting and Threshold Estimation,"
Boston College Working Papers in Economics
319., Boston College Department of Economics, revised 12 May 1998.
- repec:idb:brikps:6447 is not listed on IDEAS
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