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1

UNCERTAINTY OF FOREIGN AID: HOW IT AFFECTS MACROECONOMIC POLICY

100%
Hulej M.
Ekonomista
|
2004
|
issue 4
473-499
EN
The article presents the results obtained from an econometric analysis of relations between the foreign aid and the quality of economic policies applied by the beneficiary country. Instable foreign transfers may necessitate costly budgetary adjustments and complications in monetary and trade policies planning. Panel data concerning 56 developing countries, covering time span of 1975 -1995 were used. The results reveal that foreign aid positively influences the quality of the applied policies and especially it is evident in the case of multilateral transfers. The effects that are discussed become visible only after specific measures of uncertainty are introduced into the study. Absence of such a variable in other empirical studies impairs their ability to distinguish the positive and the negative results of foreign aid.
2

THE IMPACT OF AID ON THE FISCAL BEHAVIOUR OF GOVERNMENTS IN TRANSITION ECONOMIES

70%
Erden L., Güven A.
Ekonomický časopis (Journal of Economics)
|
2009
|
vol. 57
|
issue 5
445-457
EN
AThis study contributes to the aid-effectiveness literature by applying a fiscal response model to a panel of 24 transition nations over the periods 1990 - 2005. The study employs various dynamic panel estimation methods in an effort to analyze the impact of foreign aid on governments' fiscal behaviour; that is, government investment, government consumption, public revenue creation and borrowing activities. The findings shed some light on the aid-growth nexus, indicating that aid promotes government investment while does not influence government consumption behaviour. Further, there appears to be a positive association between aid and public borrowing, which can be detrimental to the growth process in transition economies.
3

EFEKTY ZAHRANIČNEJ POMOCI NA ZNÍŽENIE REGIONÁLNYCH DISPARÍT: PRÍPADY TRANZITÍVNYCH, ROZVÍJAJÚCICH SA A ROZVOJOVÝCH EKONOMÍK

61%
Workie Tiruhen M.
Ekonomický časopis (Journal of Economics)
|
2009
|
vol. 57
|
issue 10
980 – 999
EN
This paper looks at the effects of foreign aid on alleviating regional (cross-country) income disparity. While foreign aid is designed to help countries finance the gaps between savings and investment, the results seem so far to indicate that foreign aid has not played any major role to generate accelerated economic growth and a subsequent relief in regional disparity. Nonetheless, there are cross-country and cross-regional differences when it comes to effective use of foreign aid. In this respect, while the data for emerging economies reveal some positive effects for regional growth, for most of the developing regions, foreign aid contributed to change a little not only trends in regional disparity but also the overall economic landscape of the countries under investigation.
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