Aid, Debt Burden and Government Fiscal Behaviour in Côte d'Ivoire

Aid, Debt Burden and Government Fiscal Behaviour in Côte d'Ivoire

Author: 
McGillivray, Mark
Date published: 
2005
Record type: 
Responsibility: 
Ouattara, Bazoumana, jt.author.
Journal Title: 
Journal of African Economies
Source: 
Journal of African Economies,Vol.14, No.2,2005,pp.247-269
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, providing information on aid and fiscal behaviour that its predecessors cannot. This model is estimated using 1975–99 time series data. Two key findings emerge: (i) the majority of aid inflows are allocated to expenditure on debt servicing; and (ii) these inflows are associated with increases in the level of public debt.

Language: 

CITATION: McGillivray, Mark. Aid, Debt Burden and Government Fiscal Behaviour in Côte d'Ivoire . : , 2005. Journal of African Economies,Vol.14, No.2,2005,pp.247-269 - Available at: https://library.au.int/aid-debt-burden-and-government-fiscal-behaviour-côte-divoire-5