Aid effectiveness in OIC member countries

This paper examines whether official development assistance (oda) is an effective tool for the socio-economic development of aid recipient oic member countries. following the suggestions in the recent academic literature,this paper estimates the impact of aid on social indicators rather than on economic growth. it measures the impact of oda on the components of human development indicator; standards of living,life expectancy and education indices. it also controls for the presence of armed conflicts,population growth,urbanization and government efforts. it utilizes annual,three-year and five-year moving average data between 2005 and 2013 for 48 oic countries. results reveal that oda substantially improves life expectancy in one year and over the longer periods its impact even increases. the results suggest increasing aid to health sector because each additional unit of aid leads to significant improvements in life expectancy. however,long-run impact of oda to education is negative. aid to education sector should target more long-term goals such as to achieve a higher quality of education. so far the aid projects mostly oriented at achieving short-term goals like increasing number of school enrolments. © 2017,statistical economic and social research. all rights reserved.