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Aid, Debt Burden and Government Fiscal Behaviour: A New Model Applied to Côte d'Ivoire

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  • Mark McGillivray
  • Bazoumana Ouattara

Abstract

This paper examines the impact of foreign aid on public sector fiscal behaviour in Côte d'Ivoire. A special interest is the relationship between aid, debt servicing and debt, given that Côte d'Ivoire is a highly indebted country. The theoretical model employed differs from those of previous studies by highlighting the interaction between debt servicing and the other fiscal variables. This model is estimated using 1975-99 time series data. Key findings are that the bulk of aid is allocated to debt servicing and that aid is associated with increases in the level of public debt.

Suggested Citation

  • Mark McGillivray & Bazoumana Ouattara, 2003. "Aid, Debt Burden and Government Fiscal Behaviour: A New Model Applied to Côte d'Ivoire," WIDER Working Paper Series DP2003-33, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2003-33
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    References listed on IDEAS

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    Cited by:

    1. World Bank, 2007. "Niger - Accelerating Growth and Achieving the Millennium Development Goals : Diagnosis and the Policy Agenda," World Bank Publications - Reports 7658, The World Bank Group.
    2. Agénor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2008. "Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction," Journal of Development Economics, Elsevier, vol. 86(2), pages 277-295, June.

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