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The consequences of fiscal episodes in OECD DAC countries for aid supply

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  • Gnangnon, Sena Kimm

Abstract

This paper examines the effects of fiscal episodes in 19 OECD (Organization for Economic Co-operation and Development) donor countries on their aid supply during the period 1970–2007. We use descriptive statistics provided by Alesina and Ardagna (2010) on these episodes and regression models to perform our analysis. Overall, the results suggest that OECD donor countries curtail their aid effort during their episodes of large fiscal consolidation whereas the effects of large fiscal stimuli episodes seem to depend on the aid variable considered. However, the European Union and the Non-European countries behave differently in terms of their aid supply.

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  • Gnangnon, Sena Kimm, 2013. "The consequences of fiscal episodes in OECD DAC countries for aid supply," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(3), pages 302-313.
    • Handle: RePEc:eee:quaeco:v:53:y:2013:i:3:p:302-313
    DOI: 10.1016/j.qref.2013.05.004
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    Cited by:

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    2. Judzik, Dario, 2014. "Heterogeneous labor demand: sectoral elasticity and trade effects in the U.S., Germany and Sweden," MPRA Paper 62768, University Library of Munich, Germany.
    3. Sèna Kimm Gnangnon, 2018. "Donors’ Trade and Their Supply of Development Aid Related to the Trade Sector: Does Donors’ Output Gap Matter?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 9(01n02), pages 1-30, February.
    4. Sena Kimm Gnangnon, 2019. "De Facto Fiscal Space in Donor-countries and Their Aid Supply: To What Extent is Trade-related Aid Supply Affected?," South Asian Journal of Macroeconomics and Public Finance, , vol. 8(1), pages 1-25, June.

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    More about this item

    Keywords

    Foreign aid; Fiscal consolidation; Fiscal stimuli;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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