# Table 3 Impact ofAid on Growth by Different Conditions ofInstitutional Quality

|DependentVariable:PeriodAverageGrowthRateofPerCapitaIncome|
|---|

|||E|conomic Aid|||||SocialAid||||Ag|gregateAid|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Conditions of<br>InstitutionalQuality|All<br><br>|In_Inst>Ave I<br>|n_Inst=<Ave <br>|Avg Inst>0 <br>|Avg Inst=<0<br>|All|In_Inst>Ave I|n_Inst=<Ave|Avg Inst>0|Avg Inst=<0|All|In_Inst>Ave I|n_Inst=<Ave|Avg Inst>0|Avg_Inst=<0|
||qd)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|(9)|(10)|qd)|(12)|(13)|(14)|(15)|
|Constant|0.0799|0.1428*|0.1085|0.1583***|—0.1545**<br>|—0.1162***|=0.1552***|—0.1280**|0.2009***|O.1579***|—O.L177***=|0.1533***|0.0893|0.1934***|0.1647***|
||(1.58)|(1.82)|(1.47)|(2.82)|<br><br>(2.19)|<br>(3.55)|<br>(3.41)|(2.17)|(3.65)|<br>(3.02)|<br>(4.36)|<br>(3.56)|(1.61)|(3.87)|(3.07)|
|InitialLn(PerCapitaIncome)|-0.0028|-0.0100|-0.0062|-0.0086|-0.0105|_-0.0069**|—-0.0114**|-0.0086|-0.0134**|-0.0111**|-0.0073**<br>|—-0.0114**|-0.0048|-0.0125**|-0.0121**|
||(0.53)|(1.23)|(0.75)|(1.29)|(1.42)|(1.99)|(2.43)|(1.39)|(2.29)|<br>(2.14)|(2.59)|<br>(2.47)|(0.88)|(2.51)|(2.22)|
|InitialLn(Fertility)|-0.0245**—|-0.0307**|-0.0265|-0.0598***|-0.0418***|-0.0281***|-0.0318**|-0.0278|-0.0645***|-0.0413***|—-0.0269***|-0.0325***|-0.0101|-0.0560***|-0.0402***|
||<br>(2.57)|<br>(2.08)|<br>(1.08)|<br>(4.13)|<br>(3.26)|<br>(3.29)|(2.46)|<br>(1.34)|<br>(3.88)|<br>(3.32)|<br>(3.25)|(2.96)|<br>(0.43)|<br>(3.14)|<br>(3.30)|
|PeriodAverageRateof|0.1521***|0.2162*|0.1297|0.1529|0.1797*<br>|—0.1474***|—0.2328**|0.1206|0.1163|0.1808*|0.1509***|—0.2232**|0.1101|0.1094|0.1788*|
|<br>Change of TOT|(2.68)|(1.84)|(1.57)|(1.35)|(1.80)|<br>(2.74)|<br>(2.12)|(1.52)|(1.10)|(1.88)|<br>(2.88)|<br>(2.47)|(1.65)|(1.29)|(1.87)|
|Ln(1+PeriodAverage|-0.1132***|-0.0731|-0.1122**|-0.1322***|-0.0477***—|-0.1064***|-0.0660|-0.1024**|-0.1313***|-0.0414|—-0.0806**|-0.0162|-0.1715***|-0.1006*|-0.0336|
|<br>Inflation/CPI)|(4.38)|(1.25)|<br>(2.57)|<br>(3.55)|<br>(0.89)|<br>(3.93)|(1.17)|<br>(2.35)|<br>(3.61)|(0.88)|<br>(2.31)|<br>(0.72)|(4.09)|(1.98)|(0.69)|
|PeriodAverageAid/GDP#|0.0099*|0.0024|0.0068|0.0145**|0.0004|0.0017|0.0001|0.0015|0.0042**|-0.0003|0.0004|-0.0003|0.0008|0.0004|-0.0005|
||(1.73)|(0.27)|(0.93)|(2.68)|(0.07)|(0.99)|(0.05)|(0.72)|(2.35)|(0.14)|(0.74)|(0.27)|(0.88)|(0.52)|(0.62)|
|RegionalDummy EAP|-0.0056|-0.0093|-0.0129|||-0.0042|-0.0096|-0.0139|||-0.0051|0.0056|-0.0106|||
||(0.78)|(0.98)|(1.13)|||(0.61)|(0.98)|(1.32)|||(0.76)|(0.66)|(1.28)|||
|Regional Dummy SSA|-0.0102*|-0.0091|-0.0111|||-0.0079|-0.0088|-0.0083|||-0.0098**|-0.0075|-0.0237|||
||(1.85)|(0.98)|(1.03)|||(1.66)|(0.93)|(0.77)|||(2.09)|(1.12)|(1.65)|||
|FSUDummy|0.0259**|0.0025|0.0394|||0.0254*|-0.0007|0.0401|||0.0246*|0.0376|0.0228|||
||(1.96)|(0.14)|(1.32)|||(1.89)|(0.06)|(1.34)|||(1.84)|(1.29)|(0.69)|||
|CrisesDummy|-0.0025|0.0021|-0.0038|-0.0038|-0.0046|-0.0026|0.0022|-0.0037|0.0085|-0.0044|-0.0026|-0.0016|-0.0019|0.0016|-0.0048|
||(0.61)|(0.29)|(0.49)|(0.49)|(0.89)|(0.60)|(0.31)|(0.46)|(1.13)|(0.83)|(0.67)|(0.25)|(0.22)|(0.19)|(0.86)|
|No. ofObservations|99|42|43|43|60|100|42|44|25|61|112|52|44|35|61|
|R-squared|0.49|0.44|0.57|0.57|0.44|0.47|0.44|0.55|0.62|0.44|0.45|0.60|0.41|0.46|0.43|
|Notes: i)Absolute valueoft-statisti<br>ii) Panel two-stage least squares me|cs calculated w<br>thods is used fo|ithWhite-corr<br>rthese analyse|ected standard<br>s.|errors is inpa|rentheses. *, *|* and *** indic|ate significanc|e atthe 10%,|5% and 1% le|vels, respectivel|y.|||||
|iii)#denotesvariablesareinstrume|ntedwiththep|eriodaverager|ateof<sup>the pre</sup>|<sup>vious spell.</sup>||||||||||||

iv) Samples were divided by different conditions of institutional quality: (i) countries whose initial level institutional quality is high (more than the sample mean) (In_Inst>Ave); (ii) countries whose initial level institutional quality is low (less than the sample mean) (In_Inst=<Ave); (iii) countries whose institutional quality is improving (the change ratio is positive) (Avg_Inst>0); and (iv) countries whose institutional quality is not-improving (the change ratio is zero or negative) (Avg_Inst=<0). Source: Authors! compilation