The long‐run relationship between ODA, growth and governance: An application of FMOLS and DOLS approaches

Africa has been received an important amount of foreign aid for several decades; however, it is among the poorest regions in world. This study examines relationship between aid, economic growth and governance African region period 1996-2014. On fully applying both technique DOLS FMOLS. In first stage this study, we examine effet on growth. second stage, assess intermediary role institutions Foreign countries. It was found that a negative effect countries FMOLS models. However, empirical results indicate improves terms presence good institution quality only model.