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

• Authors: Erden Lütfi , Güven Aytekin
• Languages of publication: EN

Abstracts

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.

Keywords

EN

ESTIMATION METHODS; FISCAL RESPONSE; FOREIGN AID; GOVERNMENT; TRANSITION ECONOMIES

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2009
• Volume: 57
• Issue: 5
• Pages: 445-457
• Document type: ARTICLE

Contributors

author

Erden Lütfi

• Hacettepe University, Department of Economics, Beytepe, Ankara, Turkey

author

Güven Aytekin

• Lutfi Erden, Hacettepe University, Department of Economics, Beytepe, Ankara, Turkey

Identifiers

CEJSH db identifier

09SKAAAA06649