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Aid and Fiscal Behaviour: What does the Evidence Show?

Morrissey, Oliver

Authors

Oliver Morrissey oliver.morrissey@nottingham.ac.uk



Abstract

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.

Journal Article Type Article
Publication Date May 1, 2015
Journal World Development
Print ISSN 0305-750X
Electronic ISSN 0305-750X
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 69
Pages 98-105
Institution Citation Morrissey, O. (2015). Aid and Fiscal Behaviour: What does the Evidence Show? . World Development, 69, 98-105. doi:10.1016/j.worlddev.2013.12.008
DOI https://doi.org/10.1016/j.worlddev.2013.12.008
Keywords aid, fiscal effects, fungibility, budget support
Publisher URL http://www.sciencedirect.com/science/article/pii/S0305750X13002921
Copyright Statement Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by/4.0

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by/4.0





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