Fiscal Effects of Aid

Oliver Morrissey and Mark McGillivray

Working Papers from eSocialSciences

Abstract: It is clear from the implications of growth theory that the impact of aid depends on how it affects savings, investment and government behaviour. In respect of low-income countries, which are the principal aid recipients and the economies for which the issue of the impact of aid on growth is most important, it is government that is most important. This paper presents a review of studies that address the impact of aid on government fiscal behaviour. In particular, the focus is on fungibility and fiscal response studies. [Discussion Paper No. 2001/61]

Keywords: fiscal policy; aid; sub-Saharan Africa (search for similar items in EconPapers)
Date: 2010-11
New Economics Papers: this item is included in nep-afr
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