Aid Absorption and Spending in Africa: A Panel Cointegration Approach.
This article focuses on the macroeconomic management of large inflows of foreign aid. It investigates the extent to which African countries have coordinated fiscal and macroeconomic responses to aid surges. In practice, we construct a panel dataset to assess the level of aid ‘absorption’ and ‘spendi...
| Publicado en: | Journal of Development Studies Vol. 47; no. 12; pp. 1925 - 1954 |
|---|---|
| Autor principal: | |
| Formato: | Artículo |
| Publicado: |
Taylor & Francis Ltd
Dec2011
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=67652391&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 67652391 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00220388 JDS jtl: Journal of Development Studies issn: 00220388 maglogo: N pubinfo: dt: Dec2011 vid: 47 iid: 12 pid: 377 pub: Taylor & Francis Ltd artinfo: ui: 67652391 10.1080/00220388.2011.579115 ppf: 1925 ppct: 29 formats: fmt: – @attributes: type: T – @attributes: type: P size: 405KB tig: atl: Aid Absorption and Spending in Africa: A Panel Cointegration Approach. aug: au: Martins, PedroM.G. affil: Overseas Development Institute, London, UK su: International economic assistance Grants (Money) Foreign exchange Imports International trade Public investments Africa sug: subj: Africa International economic assistance Grants (Money) Foreign exchange Imports International trade Public investments ab: This article focuses on the macroeconomic management of large inflows of foreign aid. It investigates the extent to which African countries have coordinated fiscal and macroeconomic responses to aid surges. In practice, we construct a panel dataset to assess the level of aid ‘absorption’ and ‘spending’. This article departs from the recent empirical literature by utilising better measures for aid inflows and by employing cointegration analysis. The empirical short-run results indicate that, on average, Africa's low-income countries have absorbed two-thirds of (grant) aid receipts. This suggests that most of the foreign exchange provided by the aid inflows has been used to finance imports. The other third has been used to build up international reserves, perhaps to protect economies from future external shocks. In the long run, absorption increases but remains below its maximum. Moreover, we also show that aid resources have been fully spent, especially in support of public investment. There is only weak evidence that a share of aid flows have been ‘saved’. Overall, these findings suggest that the macroeconomic management of aid inflows in Africa has been significantly better than often portrayed in comparable exercises. The implication is that African countries will be able to efficiently manage a gradual scaling up in aid resources. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Journal of Development Studies is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Journal of Development Studies holder: Taylor & Francis Ltd dt: @attributes: year: 2011 holdings: @attributes: islocal: N |
|---|