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Dış Yardım ve Yönetişimin Büyüme Üzerindeki Etkileri

Year 2023, Volume: 31 Issue: 57, 11 - 23, 26.07.2023
https://doi.org/10.17233/sosyoekonomi.2023.03.01

Abstract

Yeterli kaynağa sahip olmayan ülkelerde sermaye ihtiyacının karşılanmasında dış yardımlar önemli rol oynamaktadır. Ancak literatürde dış yardımların ekonomik performansı teşvik ettiği görüşü yanında, alıcı ülkelerde olumsuz etkileri olduğunu öne süren görüşler de mevcuttur. Bazı görüşler ise dış yardımların alıcı ülkelerdeki olumlu etkisinin ülkelerin kurumsal kalite düzeyine bağlı olduğunu savunmaktadır. Çalışmada dış yardımlar, yönetişimin kalitesi ve ekonomik büyüme arasındaki ilişkiler incelenmiştir. Söz konusu ilişkinin incelenmesinde dinamik panel veri analiz yönteminden yararlanılmıştır. Ampirik analizde 2000-2019 dönemini kapsayan dönemde dış yardım kullanan 78 düşük gelirli ülke örneklemi kullanılmıştır. Elde edilen bulgulara göre, örneklem ülkelerde dış yardımlar ekonomik büyümeyi negatif etkilemektedir. Ayrıca yönetişimin kalitesi ile ekonomik büyüme arasında pozitif yönlü bir ilişki tespit edilmiştir. Bu bulgular doğrultusunda, örneklem ülkelerde yönetişimin kalitesindeki iyileşmenin ekonomik performansı pozitif etkileyeceğini söyleyebiliriz.

References

  • Abdelbary, I. & J. Benhin (2019), “Governance, Capital and Economic Growth in the Arab Region”, The Quarterly Review of Economics and Finance, 73, 184-191.
  • Adedokun, A.J. (2017), “Foreign Aid, Governance and Economic Growth in Sub-Saharan Africa: Does One Cap Fit All?”, African Development Review, 29(2), 184-196.
  • Arellano, M. & O. Bover (1995), “Another Look at the Instrumental Variable Estimation of Error-components Models”, Journal of Econometrics, 68, 29-51.
  • Asongu, S.A. & J.C. Nwachukwu (2015), “Foreign Aid and Governance in Africa”, International Review of Applied Economics, 30(1), 69-88.
  • Awan, M. & U. Mustafa (2015), “Institutional Governance, Aid and Economıc Growth: A Case of South Asian Countries”, International Academy of Business and Economics IABE-2015 Orlando - Winter Conference, March 22-24.
  • Barış, A. (2018), “Uluslararası Ekonomik Kuruluşların Yönetişim Yaklaşımı”, Manisa Celal Bayar Üniversitesi Sosyal Bilimler Dergisi, 18(2), 415-438.
  • Bayar, Y. (2016), “Public Governance and Economic Growth in the Transitional Economies of the European Union”, Transylvanian Review of Administrative Sciences, 12(48), 5-18.
  • Blundell, R. & S. Bond (1998), “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models”, Journal of Econometrics, 87, 115-143.
  • Booth, D. (2011), “Aid, Institutions and Governance: What have we Learned?”, Development Policy Review, 29(1), 5-26.
  • Brazys, S. (2016), “Aid and Governance: Negative Returns?”, The European Journal of Development Research, 28(2), 294-313.
  • Busse, M. & S. Groening (2010), “Does Foreign Aid Improve Governance?”, Proceedings of the German Development Economics Conference, Hannover 2010 6, Verein für Socialpolitik, Research Committee Development Economics.
  • Carbone, M. (2010), “The European Union, Good Governance and Aid Co-ordination”, Third World Quarterly, 31(1), 13-29.
  • Easterly, W. (2003), “Can Foreign Aid Buy Growth?”, Journal of Economic Perspectives, 3, 23-48.
  • Easterly, W. et al. (2004), “Aid, Policies, and Growth”, American Economic Review, 94(3), 774-780.
  • Emara, N. & E. Jhonsa (2014), “Governance and Economic Growth: The Case of Middle East and North African Countries”, Journal of Development and Economic Policies, 16 (1), 47-71.
  • Fayissa, B. & M.I. El-Kaissy (1999), “Foreign Aid and the Economic Growth of Developing Countries (LDCs): Further Evidence”, Studies in Comparative International Development, 34, 37-50.
  • Freedom House (2022), Freedom in the World Database, <https://freedomhouse.org/report/freedom-world>, 23.08.2022.
  • Gitaru, K. (2015), “Impact of Foreign Aid on Economic Growth”, MPRA Paper No. 68145. University Library of Munich, Germany.
  • Karras, G. (2006), “Foreign Aid and Long-Run Economic Growth: Empirical Evidence for a Panel of Developing Countries”, Journal of International Development, 18(1), 15-28.
  • Kaufmann, D. & A. Kraay (2002), “Growth Without Governance”, Policy Research Working Paper 2928.
  • Knack, S. (2001), “Aid Dependence and the Quality of Governance: Cross-Country Empirical Tests”, Southern Economic Journal, 68(2), 310-329.
  • Mallik, G. (2008), “Foreign Aid and Economic Growth: A Cointegration Analysis of the Six Poorest African Countries”, Economic Analysis and Policy, 38, 251-260.
  • Maruta, A. et al. (2020), “Foreign Aid, Institutional Quality and Economic Growth: Evidence from the Developing World”, Economic Modelling, 89, 444-463.
  • Mehanna, R. et al. (2010), “Governance and Economic Development in MENA Countries: Does Oil Affect the Presence of a Virtuous Circle?”, Journal of Transnational Management, 15(2), 117-150.
  • Moolio, P. & S. Kong (2016), “Foreign Aid and Economic Growth: Panel Cointegration Analysis for Cambodia, Lao PDR, Myanmar, and Vietnam”, Athens Journal of Business & Economics, Athens Institute for Education and Research, 2(4), 417-428.
  • Sachs, J. (2005), The End of Poverty: Economic Possibilities for our Time, New York: Penguin.
  • Wako, H.A. (2018), “Aid, Institutions and Economic Growth in Sub-Saharan Africa: Heterogeneous Donors and Heterogeneous Responses”, Review of Development Economics, 22(1), 23-44.
  • World Bank (1989), From Crisis to Sustainable Growth: The Long-Term Perspective Study on SubSaharan Africa (The "LTPS"), Washington, DC.
  • World Bank (2022a), The World Development Indicators Database, <https://databank.worldbank.org/source/world-development-indicators>, 23.08.2022.
  • World Bank (2022b), The Worldwide Governance Indicators Database, <https://databank.worldbank.org/source/worldwide-governance-indicators>, 23.08.2022.
  • Yerdelen-Tatoğlu, F. (2012), İleri Panel Veri Analizi: Stata Uygulamalı, İstanbul: Beta Yayıncılık.
  • Yoon, J.W. & E. Kim (2015), “Does Aid Improve Governance in Developing Countries? Different Effects by Multi-Dimensional Governance”, The Korean Journal of Policy Studies, 30(2), 1-21.

The Effect of Foreign Aid and Governance on Economic Growth

Year 2023, Volume: 31 Issue: 57, 11 - 23, 26.07.2023
https://doi.org/10.17233/sosyoekonomi.2023.03.01

Abstract

Foreign aid is essential in meeting the capital needs of countries that need more resources. However, in the literature, besides the view that foreign aid encourages economic performance, opinions suggest that it has adverse effects on recipient countries. Some ideas argue that the positive impact of foreign aid in recipient countries depends on the institutional quality level of the nations. We examine the relationships between foreign aid, the quality of governance, and economic growth using the dynamic panel data analysis method. The empirical analysis includes samples of 78 low-income countries that used foreign aid from 2000-2019. According to the findings, foreign aid affects economic growth negatively in sample countries. In addition, we find a positive relationship between the quality of governance and economic growth. In line with these findings, we can state that improvements in governance quality will positively impact economic development in the sample nations.

References

  • Abdelbary, I. & J. Benhin (2019), “Governance, Capital and Economic Growth in the Arab Region”, The Quarterly Review of Economics and Finance, 73, 184-191.
  • Adedokun, A.J. (2017), “Foreign Aid, Governance and Economic Growth in Sub-Saharan Africa: Does One Cap Fit All?”, African Development Review, 29(2), 184-196.
  • Arellano, M. & O. Bover (1995), “Another Look at the Instrumental Variable Estimation of Error-components Models”, Journal of Econometrics, 68, 29-51.
  • Asongu, S.A. & J.C. Nwachukwu (2015), “Foreign Aid and Governance in Africa”, International Review of Applied Economics, 30(1), 69-88.
  • Awan, M. & U. Mustafa (2015), “Institutional Governance, Aid and Economıc Growth: A Case of South Asian Countries”, International Academy of Business and Economics IABE-2015 Orlando - Winter Conference, March 22-24.
  • Barış, A. (2018), “Uluslararası Ekonomik Kuruluşların Yönetişim Yaklaşımı”, Manisa Celal Bayar Üniversitesi Sosyal Bilimler Dergisi, 18(2), 415-438.
  • Bayar, Y. (2016), “Public Governance and Economic Growth in the Transitional Economies of the European Union”, Transylvanian Review of Administrative Sciences, 12(48), 5-18.
  • Blundell, R. & S. Bond (1998), “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models”, Journal of Econometrics, 87, 115-143.
  • Booth, D. (2011), “Aid, Institutions and Governance: What have we Learned?”, Development Policy Review, 29(1), 5-26.
  • Brazys, S. (2016), “Aid and Governance: Negative Returns?”, The European Journal of Development Research, 28(2), 294-313.
  • Busse, M. & S. Groening (2010), “Does Foreign Aid Improve Governance?”, Proceedings of the German Development Economics Conference, Hannover 2010 6, Verein für Socialpolitik, Research Committee Development Economics.
  • Carbone, M. (2010), “The European Union, Good Governance and Aid Co-ordination”, Third World Quarterly, 31(1), 13-29.
  • Easterly, W. (2003), “Can Foreign Aid Buy Growth?”, Journal of Economic Perspectives, 3, 23-48.
  • Easterly, W. et al. (2004), “Aid, Policies, and Growth”, American Economic Review, 94(3), 774-780.
  • Emara, N. & E. Jhonsa (2014), “Governance and Economic Growth: The Case of Middle East and North African Countries”, Journal of Development and Economic Policies, 16 (1), 47-71.
  • Fayissa, B. & M.I. El-Kaissy (1999), “Foreign Aid and the Economic Growth of Developing Countries (LDCs): Further Evidence”, Studies in Comparative International Development, 34, 37-50.
  • Freedom House (2022), Freedom in the World Database, <https://freedomhouse.org/report/freedom-world>, 23.08.2022.
  • Gitaru, K. (2015), “Impact of Foreign Aid on Economic Growth”, MPRA Paper No. 68145. University Library of Munich, Germany.
  • Karras, G. (2006), “Foreign Aid and Long-Run Economic Growth: Empirical Evidence for a Panel of Developing Countries”, Journal of International Development, 18(1), 15-28.
  • Kaufmann, D. & A. Kraay (2002), “Growth Without Governance”, Policy Research Working Paper 2928.
  • Knack, S. (2001), “Aid Dependence and the Quality of Governance: Cross-Country Empirical Tests”, Southern Economic Journal, 68(2), 310-329.
  • Mallik, G. (2008), “Foreign Aid and Economic Growth: A Cointegration Analysis of the Six Poorest African Countries”, Economic Analysis and Policy, 38, 251-260.
  • Maruta, A. et al. (2020), “Foreign Aid, Institutional Quality and Economic Growth: Evidence from the Developing World”, Economic Modelling, 89, 444-463.
  • Mehanna, R. et al. (2010), “Governance and Economic Development in MENA Countries: Does Oil Affect the Presence of a Virtuous Circle?”, Journal of Transnational Management, 15(2), 117-150.
  • Moolio, P. & S. Kong (2016), “Foreign Aid and Economic Growth: Panel Cointegration Analysis for Cambodia, Lao PDR, Myanmar, and Vietnam”, Athens Journal of Business & Economics, Athens Institute for Education and Research, 2(4), 417-428.
  • Sachs, J. (2005), The End of Poverty: Economic Possibilities for our Time, New York: Penguin.
  • Wako, H.A. (2018), “Aid, Institutions and Economic Growth in Sub-Saharan Africa: Heterogeneous Donors and Heterogeneous Responses”, Review of Development Economics, 22(1), 23-44.
  • World Bank (1989), From Crisis to Sustainable Growth: The Long-Term Perspective Study on SubSaharan Africa (The "LTPS"), Washington, DC.
  • World Bank (2022a), The World Development Indicators Database, <https://databank.worldbank.org/source/world-development-indicators>, 23.08.2022.
  • World Bank (2022b), The Worldwide Governance Indicators Database, <https://databank.worldbank.org/source/worldwide-governance-indicators>, 23.08.2022.
  • Yerdelen-Tatoğlu, F. (2012), İleri Panel Veri Analizi: Stata Uygulamalı, İstanbul: Beta Yayıncılık.
  • Yoon, J.W. & E. Kim (2015), “Does Aid Improve Governance in Developing Countries? Different Effects by Multi-Dimensional Governance”, The Korean Journal of Policy Studies, 30(2), 1-21.
There are 32 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Articles
Authors

Pınar Hayaloğlu 0000-0001-7181-8801

Muhammed Tümay 0000-0002-3226-3898

Early Pub Date July 23, 2023
Publication Date July 26, 2023
Submission Date October 25, 2022
Published in Issue Year 2023 Volume: 31 Issue: 57

Cite

APA Hayaloğlu, P., & Tümay, M. (2023). The Effect of Foreign Aid and Governance on Economic Growth. Sosyoekonomi, 31(57), 11-23. https://doi.org/10.17233/sosyoekonomi.2023.03.01
AMA Hayaloğlu P, Tümay M. The Effect of Foreign Aid and Governance on Economic Growth. Sosyoekonomi. July 2023;31(57):11-23. doi:10.17233/sosyoekonomi.2023.03.01
Chicago Hayaloğlu, Pınar, and Muhammed Tümay. “The Effect of Foreign Aid and Governance on Economic Growth”. Sosyoekonomi 31, no. 57 (July 2023): 11-23. https://doi.org/10.17233/sosyoekonomi.2023.03.01.
EndNote Hayaloğlu P, Tümay M (July 1, 2023) The Effect of Foreign Aid and Governance on Economic Growth. Sosyoekonomi 31 57 11–23.
IEEE P. Hayaloğlu and M. Tümay, “The Effect of Foreign Aid and Governance on Economic Growth”, Sosyoekonomi, vol. 31, no. 57, pp. 11–23, 2023, doi: 10.17233/sosyoekonomi.2023.03.01.
ISNAD Hayaloğlu, Pınar - Tümay, Muhammed. “The Effect of Foreign Aid and Governance on Economic Growth”. Sosyoekonomi 31/57 (July 2023), 11-23. https://doi.org/10.17233/sosyoekonomi.2023.03.01.
JAMA Hayaloğlu P, Tümay M. The Effect of Foreign Aid and Governance on Economic Growth. Sosyoekonomi. 2023;31:11–23.
MLA Hayaloğlu, Pınar and Muhammed Tümay. “The Effect of Foreign Aid and Governance on Economic Growth”. Sosyoekonomi, vol. 31, no. 57, 2023, pp. 11-23, doi:10.17233/sosyoekonomi.2023.03.01.
Vancouver Hayaloğlu P, Tümay M. The Effect of Foreign Aid and Governance on Economic Growth. Sosyoekonomi. 2023;31(57):11-23.