The Effect of Development Aid Unpredictability and Migrants’ Remittances on Fiscal Consolidation in Developing Countries

Sèna Kimm Gnangnon

World Development, 2014, vol. 54, issue C, 168-190

Abstract: We use panel data on 74 developing countries for the period 1980–2007 to examine the effects of aid unpredictability and migrants’ remittances on fiscal consolidation in these countries. Using two definitions of fiscal adjustment and a conditional logit model to perform our analysis, evidence is shown that except for the case of low-income countries (especially gradual fiscal retrenchment), remittances increase the likelihood of fiscal consolidation, be the latter gradual or rapid. Surprisingly, we observe that aid unpredictability does not affect the adoption of fiscal consolidation measures in all the groups considered.

Keywords: remittances; aid unpredictability; fiscal consolidation (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X1300185X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:54:y:2014:i:c:p:168-190

DOI: 10.1016/j.worlddev.2013.08.003

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().