The Influence of Foreign Aid on Public Sector Efficiency: A Panel Data Analysis

• 영문명: The Influence of Foreign Aid on Public Sector Efficiency: A Panel Data Analysis
• 발행기관: 국제융합경영학회
• 저자명: Birendra Narayan SHAH
• 간행물 정보: 『융합경영연구』Vol.11 No.3, 25~35쪽, 전체 11쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2023.06.30

영문 초록

Purpose: This paper examines whether foreign aid influences public sector efficiency in policy areas of administration, education, and stability. Research design, data and methodology: The study uses panel data of 77 aid recipient developing countries over the period 2000-2020 and employs various panel data techniques to estimate. Results: We found that a percentage change in foreign aid increases administrative efficiency by 0.02 to 0.04 on average ceteris paribus in the short run. On the other hand, a percentage increase in foreign aid decreases education efficiency by 0.005 to 0.006 on average. While the impact of foreign aid on the policy area of stability is insignificant. Conclusions: The empirical results of this study have important implications for both donors and aid recipient countries. It suggests that to get positive influence from foreign aid, in the area of education and stability, the recipient countries need to increase accessibility of secondary schools with quality education especially; technical and vocational. Also, the donor should provide a minimum threshold amount of foreign aid to developing countries for reforming the institutions' capacity building.

목차

1. Introduction

2. Literature Review

3. Empirical Specification and Variables Description

4. Empirical Result

5. Policy Implication

6. Conclusion

References

키워드

Foreign Aid Public Sector Efficiency Panel Data Difference GMM System GMM