Abstract
Sector specific aid inflow has been considered significant for improved human development in developing economies. For this, we have analyzed how sector specific aid inflows and institutional quality affect human development by using panel data from 18 developing economies between 2002 and 2018. We have used a single equation linear model generalized method of moments (GMM) to examine the relationship between dependent and independent variables. The data has been taken from World Development Indicators, World Bank, and Organization for Economic Cooperation and Development. The result showed that aid and institutional quality were positively and significantly linked with the human development index. More aid was justified if stronger economic, political, and institutional governance could be secured in the receiving nations and the requirement for institutional improvements to make aid an influential instrument for human development in the concerned economies. The study suggests for more proper allocation of aid commitments among these countries for high growth and development. There should be a stable economic and political environment and high trade with other countries.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.