Aid, Debt Burden and Government Fiscal Behaviour in CÔTe D&Apos;Ivoire

Posted: 29 Feb 2008

See all articles by Mark McGillivray

Mark McGillivray

United Nations - World Institute for Development Economics Research (UNU/WIDER)

Bazoumana Ouattara

University of Wales

Date Written: June 2005

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.

Keywords: health financing, care-seeking behaviour, transition economies

Suggested Citation

McGillivray, Mark and Ouattara, Bazoumana, Aid, Debt Burden and Government Fiscal Behaviour in CÔTe D&Apos;Ivoire (June 2005). Journal of African Economies, Vol. 14, Issue 2, pp. 247-269, 2005, Available at SSRN: https://ssrn.com/abstract=915458

Mark McGillivray (Contact Author)

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

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Bazoumana Ouattara

University of Wales ( email )

Singleton Park
Swansea, Wales SA2 8PP
United Kingdom

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