Aid and government fiscal behavior: assessing recent evidence

Morrissey, Oliver (2014) Aid and government fiscal behavior: assessing recent evidence. World Development, 69 . pp. 98-105. ISSN 0305-750X

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This paper reviews evidence published in the last 10 years that has added to our understanding of the effects of aid on government spending and tax effort in recipient countries, with a discussion of when (general) budget support is a fiscally efficient aid modality. Three generalizations are permitted by the evidence: aid finances government spending; the extent to which aid is fungible is over-stated and even where it is fungible this does not appear to make the aid less effective; and there is no systematic effect of aid on tax effort. Beyond these conclusions effects are country-specific.

Item Type: Article
Keywords: aid, fiscal effects, fungibility, budget support
Schools/Departments: University of Nottingham UK Campus > Faculty of Social Sciences > School of Economics
Identification Number:
Depositing User: Kesaite, Viktorija
Date Deposited: 04 Sep 2015 12:27
Last Modified: 13 Sep 2016 14:30

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