Is External Development Assistance Fungible? The Case of Mauritius

Shyam Nath and Sanjeev Sobhee

Oxford Development Studies, 2002, vol. 30, issue 3, 307-315

Abstract: External and internal development funds may be substitutes or complementary in financing development projects. We construct a welfare-maximizing model of a community, explicitly incorporating the decision-makers' choice between internal and external resources for development purposes. The model is estimated with Mauritian data, which include periods of rising foreign aid and substantial repayment. The computed values of substitution elasticity between the two sources of funds, derived from the social choice process, indicate that internal and external funds are complementary and therefore external funds do not seem to be fungible.

Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/1360081022000012716 (text/html)
Access to full text is restricted to subscribers.

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:taf:oxdevs:v:30:y:2002:i:3:p:307-315

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CODS20

DOI: 10.1080/1360081022000012716

Access Statistics for this article

Oxford Development Studies is currently edited by Jo Boyce and Frances Stewart

More articles in Oxford Development Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().