Open AccessConditional Effect of Foreign Aid on Production Efficiency in Developing Countries
Author(s) -
Ruhaida Saidon
Publication year - 2020
Publication title -
indian-pacific journal of accounting and finance
Language(s) - English
Resource type - Journals
ISSN - 2590-406X
DOI - 10.52962/ipjaf.2020.4.1.89
Subject(s) - conditionality , tobit model , production (economics) , panel data , developing country , econometrics , economics , macroeconomics , political science , economic growth , politics , law
This study analyzes the conditional effect of foreign aid on production efficiency in selected 80 developing countries during the period of 2005-2017. This study involves parametric and non-parametric data analysis approach. The DEA (non-parametric) was used to get the production efficiency scores, while a panel Tobit regression analysis had conducted to measure the conditionality effect of foreign aid on the production efficiency. The results indicated that the conditional effect of foreign aid has a positive significant influence on production efficiency of developing countries during the period of study. This finding implies the positive impact foreign aid on production efficiency depends on the conditional effect of foreign aid.