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Constraints to achieving the MDGs through domestic resource mobilization

Robert Vos, Marco Sánchez Cantillo () and Keiji Inoue

Working Papers from United Nations, Department of Economics and Social Affairs

Abstract: The present paper focuses on the role of domestic resource mobilization for financing poverty reduction strategies. Policy makers should be aware of important macroeconomic trade-offs associated with MDG strategies financed from tax increases or domestic borrowing. The trade-offs are largely intertemporal: can poor and middle-income countries absorb the initial financing costs in order to achieve expected gains in productivity and human development over time? This calls for a dynamic economy-wide framework to identify the importance of such trade-offs. The paper presents such a framework and illustrates its usefulness in applications for Costa Rica and Ecuador.

Keywords: computable general equilibrium models; distribution; welfare and poverty; foreign aid; macroeconomic analyses of economic development. (search for similar items in EconPapers)
JEL-codes: C68 F35 I3 O11 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2007-05
New Economics Papers: this item is included in nep-afr and nep-dev
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Citations: View citations in EconPapers (3) Track citations by RSS feed

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Persistent link: https://EconPapers.repec.org/RePEc:une:wpaper:36

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