The reality about aid and governance: the threshold theory

Said Jaouadi

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: foreign aid; governance; threshold; institutions (search for similar items in EconPapers)
JEL-codes: F35 O16 O19 (search for similar items in EconPapers)
Date: 2011-02-10, Revised 2011-04-01
New Economics Papers: this item is included in nep-ara and nep-cwa
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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