Aid and government fiscal behavior: assessing recent evidence

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 permit...

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Main Author: Morrissey, Oliver
Format: Article
Published: Elsevier 2014
Subjects:
Online Access:https://eprints.nottingham.ac.uk/29790/
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author Morrissey, Oliver
author_facet Morrissey, Oliver
author_sort Morrissey, Oliver
building Nottingham Research Data Repository
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description 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.
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spelling nottingham-297902020-05-04T16:41:13Z https://eprints.nottingham.ac.uk/29790/ Aid and government fiscal behavior: assessing recent evidence Morrissey, Oliver 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. Elsevier 2014-01-29 Article PeerReviewed Morrissey, Oliver (2014) Aid and government fiscal behavior: assessing recent evidence. World Development, 69 . pp. 98-105. ISSN 0305-750X aid fiscal effects fungibility budget support http://www.sciencedirect.com/science/article/pii/S0305750X13002921 doi:10.1016/j.worlddev.2013.12.008 doi:10.1016/j.worlddev.2013.12.008
spellingShingle aid
fiscal effects
fungibility
budget support
Morrissey, Oliver
Aid and government fiscal behavior: assessing recent evidence
title Aid and government fiscal behavior: assessing recent evidence
title_full Aid and government fiscal behavior: assessing recent evidence
title_fullStr Aid and government fiscal behavior: assessing recent evidence
title_full_unstemmed Aid and government fiscal behavior: assessing recent evidence
title_short Aid and government fiscal behavior: assessing recent evidence
title_sort aid and government fiscal behavior: assessing recent evidence
topic aid
fiscal effects
fungibility
budget support
url https://eprints.nottingham.ac.uk/29790/
https://eprints.nottingham.ac.uk/29790/
https://eprints.nottingham.ac.uk/29790/