The Fiscal Effects of Aid in Ghana
Robert Osei (),
Oliver Morrissey () and
No RP2005-61, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)
An important feature of aid to developing countries is that it is given to the government. As a result, aid should be expected to affect fiscal behaviour, although theory and existing evidence is ambiguous regarding the nature of these effects. This paper applies techniques developed in the 'macroeconometrics' literature to estimate the dynamic linkages between aid and fiscal aggregates. Vector autoregressive methods are applied to 34 years of annual data in Ghana to model the effect of aid on fiscal behaviour.
Keywords: Economic assistance and foreign aid; Econometric models (Economic development); Expenditures; Public; Fiscal policy; Taxation (search for similar items in EconPapers)
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Journal Article: The fiscal effects of aid in Ghana (2005)
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