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Official Development Assistance and its Impact on Governance in short term: The Threshold theory

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  • Dr. Said JAOUADI

    (Assistant professor, CBA Jazan University,KSA – URMOFIB Tunis el-Manar University, Tunisia)

  • Dr. Hela HERMASSI

    (Assistant professor,FSEG Nabeul – URMOFIB Tunis el-Manar University, Tunisia)

Abstract

This paper is part of a perspective on the Official Development Assistance (ODA) as a means of international cooperation, and its impact on governance in the beneficiary developing countries in short term.For several years, governance has emerged to the surface of the economic debate as a central concept in the international economy, as it reflects the improvement of the socio-political environment; this environment should help support economic growth rate recorded in developing countries and preserve their human development. Mainly since several authors, such as: Burnside and Dollar[1] (2000), Hansen and Tarp[2] (2001), emphasize that ODA improves economic growth only in developing countries with a healthy political and economic environment.This article is based on the work of Stephen Knack[3] (1999); the author was able to demonstrate that the aid granted to developing countries is harmful. In fact, the funds allocated by donors deteriorate governance in beneficiary countries. Knack (1999) went further to study samples from the studied basket through arbitrary determination of thresholds, e.g.: countries receiving aid> 5%, African countries, spaces that have a GDP per capita

Suggested Citation

  • Dr. Said JAOUADI & Dr. Hela HERMASSI, 2013. "Official Development Assistance and its Impact on Governance in short term: The Threshold theory," International Journal of Business and Social Research, LAR Center Press, vol. 3(3), pages 185-193, March.
    • Handle: RePEc:lrc:larijb:v:3:y:2013:i:3:p:185-193
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    Cited by:

    1. Martinez, Pablo, 2015. "The impact of foreign aid on economic growth," MPRA Paper 66588, University Library of Munich, Germany.
    2. Thapa, Narayan, 2014. "Foreign aid and its impact on governance in Nepal," MPRA Paper 58960, University Library of Munich, Germany.

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