MODERATING ROLE OF INSTITUTIONAL QUALITY IN THE RELATIONSHIP BETWEEN OFFICIAL DEVELOPMENT ASSISTANCE AND POVERTY IN THE DEMOCRATIC REPUBLIC OF CONGO

This paper aims to assess the moderating role of institutional quality in the relationship between official development assistance (ODA) and poverty in the Democratic Republic of Congo over the period 1990-2024. Despite the considerable amounts of external resources to support economic and social development. Poverty remains the daily life of many peoples in the world. Whose sub-Saharan Africa is home to a large proportion of the poor. This situation raises questions about the real effectiveness of international aid. Using a hypothetico-deductive approach and an ARDL model supported by the error correction model, the study examines the short-term and long-term effects of ODA on poverty by integrating institutional quality as a moderating variable. The preliminary results validate the potential existence of a long-term relationship between the variables used and reveal that Official Development Assistance does not have a significant effect on poverty in the short term. On the other hand, the interaction between ODA and institutional quality contributes significantly to long-term poverty reduction. These results highlight the importance of institutions in promoting aid effectiveness, suggesting that improved governance is a key condition for transforming external resources into sustainable results in the fight against poverty in the Democratic Republic of Congo.