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Title:Aid disaggregation, endogenous aid and the public sector in aid-recipient economies: Evidence from Côte d'Ivoire PDF Logo
Authors:Mavrotas, George
Ouattara, Banzoumana
Issue Date:2003
Series/Report no.:WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2003/15
Abstract:The present paper examines the impact of different aid types, namely project aid, programme aid, technical assistance and food aid on the fiscal sector of the aid-recipient economy by using time-series data for Côte d’Ivoire over the period 1975–99. Empirical results obtained by estimating correctly the solution of the theoretical model show that when a single value (or aggregated) for aid is used, foreign aid is fully consumed in the case of Côte d’Ivoire. However, results obtained under the assumption of aid heterogeneity clearly suggest that the government responds differently according to the nature of the aid inflows. Our approach sheds plenty of light on how the aid-recipient government reacts to different categories of foreign aid inflows and the empirical findings clearly demonstrate the importance of the aid disaggregation approach for delving deeper into aid effectiveness issues.
Subjects:foreign aid
aid effectiveness
aid disaggregation
fiscal response literature
Côte d’Ivoire
JEL:F35
ISBN:9291904139
Document Type:Working Paper
Appears in Collections:WIDER Discussion Papers, United Nations University (UNU)

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