The Fiscal Effects of Aid in Zambia

Sonja Fagernäs () and John Roberts

No 11, Working Papers from Economics and Statistics Analysis Unit (ESAU), Overseas Development Institute

Abstract: Working Paper 11 gives a synthesis of Working Papers 7, 9 and 10 (see the relevant Summaries for further details). It also provides a brief synthesis of earlier literature on the fiscal effects of aid, which is related to the wider literature on the development impact of aid and on budget choice. The paper presents the econometric methodology used in the country studies of Malawi, Uganda and Zambia (vector autoregression) and its application, and discusses the problem of reconciling data on aid from donor and recipient sources. It makes some general observations from the three country studies relevant to aid effectiveness – the sui generis character of recipient countries’ policies and institutions that govern the impact of aid, the heterogeneity of calculated fiscal impacts, the persistent rigidities in countries’ uses of aid, and the absence of significant aid-financed expenditures from countries’ budgets.

Keywords: Fiscal; aid; aid effectiveness; Malawi; Uganda; Zambia; budget; economic growth (search for similar items in EconPapers)
Pages: 44 pages
Date: 2004-10
New Economics Papers: this item is included in nep-afr, nep-dev and nep-mac
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Published as ISBN 0 85003 7395

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Working Paper: The Fiscal Effects of Aid in Zambia (2004)
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