Foreign Aid and Quality of Governance in Developing Countries: An Econometric Case Study of South Asia and East Asia

Quazi, Rahim M.; Alam, Arshad

doi:10.5539/ibr.v8n9p16

Cited by 3 publications

(2 citation statements)

References 22 publications

(36 reference statements)

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“…The explanatory variables have been included in Equation ( 1) following the current literature. The lagged change in FDI (∆FDI i,t-1 ) has been added following Noorbakhsh et al (2001) and Quazi et al (2014); corruption control has been added following Al-Sadig ( 2009), Ketkar et al (2005) and Quazi et al (2014); economic freedom has been added following Quazi et al (2014); return on investment has been added following Edwards (1990), Jaspersen et al (2000) and Quazi et al (2014); infrastructure has been added following Loree and Guisinger (1995) and Quazi et al (2014); human capital has been added following Hanson (1996), Noorbakhsh et al (2001) and Quazi et al (2014); market size has been added following Jaspersen et al (2000), Wei (2000) and Quazi et al (2014); and quality of governance has been added following Quazi and Alam (2015). These variables are explained next.…”

Section: Model and Datamentioning

confidence: 99%

Multilateral Foreign Aid, Bilateral Foreign Aid, and Foreign Direct Investment in Latin America

Quazi

Ballentine

Bindu

et al. 2019

IJEFI

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This study analyzes the impact of foreign aid on foreign direct investment (FDI) in Latin America. Using the Feasible Generalized Least Squares panel estimation methodology with 1996-2017 panel data from 19 countries, this study finds that the impact of foreign aid on FDI in Latin America is insignificant. However, when total aid is disaggregated into bilateral aid and multilateral aid, it is found that multilateral aid significantly boosts FDI, but bilateral aid does not. These results lend credence to the hypothesis that multilateral aid (which is likely to be aligned with the non-political developmental orientation of the multilateral donor organizations) is channeled into legitimate development projects that raise the productivity of capital, which helps attract more FDI to the recipient countries. However, bilateral aid (which is often dictated by the geo-political strategic selfinterests of the donor countries) can get funneled into non-productive projects. The study also finds that the other significant drivers of FDI in the sample countries include economic freedom, quality of governance, market size, rate of return, infrastructure, and human capital. These results appear robust across several model specifications.

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Section: Model and Datamentioning

confidence: 99%

Multilateral Foreign Aid, Bilateral Foreign Aid, and Foreign Direct Investment in Latin America

Quazi

Ballentine

Bindu

et al. 2019

IJEFI

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show abstract

“…For example, discount rate affects inflation rate: it has a direct proportionality (Del Negro et al , 2015). Corruption is related to political stability and poor transparency: it increases with unstable governments and politics, and also with transparency levels (Nurudeen et al , 2015; Quazi et al , 2015). Toll price is affected by the number of vehicles and investment size: it decreases with number of vehicles utilizing the project (Albert and Mahalel, 2006) and increases with investment size to ensure timely return on investment (Albalate and Bel, 2009).…”

Section: Findings and Discussionmentioning

confidence: 99%

A review of public-private partnership: critical factors of concession period

Ullah

Ayub

Qayyum

et al. 2016

JFMPC

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Purpose The purpose of this paper is to investigate the critical decision factors of public–private partnership (PPP) concession which is complex due to a number of uncertain and random variables. To identify critical factors contributing to determination of concession period, this study reviews the published literature. It also identifies countries contributing most in PPP research. As a whole, it provides a mutually beneficial scenario by formulating a decision-making matrix. Design/methodology/approach This paper reviews the literature published during the period 2005-2015. A two-staged methodology is followed on retrieved scholarly papers: first, countries contributing to PPP are identified along with authors and affiliated institutions. Second, using frequency analysis of shortlisted critical factors, yearly appearance and stakeholders affected, a decision matrix is formulated. Findings The most contributing country toward PPP research is China, followed by the USA both in terms of country- and author-based contribution. In total, 63 factors are identified that affect PPP concession out of which, 8 per cent are highly critical and 21 per cent are marginally critical for decision-making. Practical implications Critical factors of PPP concession period will be identified with the help of decision-making matrix. This will help in adequate resource allocation for handling critical factors ensuring project success. Researchers may also understand the research trends in the past decade to usher ways for future improvements. Originality/value This paper reports findings of an original and innovative study, which identifies critical success factors of PPP concession period and synthesizes them into a decision-making matrix. Many of the previous studies have identified and ranked the critical factors but such a synthesis has not been reported.

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Does Foreign Aid Help or Hinder the Institutional Quality of the Recipient Country? New Evidence From the Oic Countries

Chowdhury

Ariff

Masih

et al. 2019

Singapore Econ. Rev.

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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.

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Foreign Aid and Quality of Governance in Developing Countries: An Econometric Case Study of South Asia and East Asia

Cited by 3 publications

References 22 publications

Multilateral Foreign Aid, Bilateral Foreign Aid, and Foreign Direct Investment in Latin America

Multilateral Foreign Aid, Bilateral Foreign Aid, and Foreign Direct Investment in Latin America

A review of public-private partnership: critical factors of concession period

Does Foreign Aid Help or Hinder the Institutional Quality of the Recipient Country? New Evidence From the Oic Countries

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