چکیده:
ublic sector decision-makers are faced with the task of allocating resources among different alternative subject due budgetary constraints. In this paper Official Development Assistance (ODA) data have been considered as foreign aid. ODA is channeled through the public sector of recipient countries and, hence, the ultimate effect of ODA on savings or economic growth depends on how governments respond to it. This paper tries to explore the impact of official development assistance on public sector behavior in selected developing countries and contribute to the fiscal response literature on two main grounds. First, it specifies a fiscal response model. Second, using panel data model for a sample of 25 aid recipient countries in Asia and Latin America over the period 1991-2010. Empirical results indicate that official development assistance has a positive and significant effect on government investment expenditure, but it has not significantly impact on government current expenditures. Results also show that ODA crowds out both government revenue and public borrowing.
خلاصه ماشینی:
"Crowding out Effect of Foreign Aid in Selected Developing Countries: Panel Data Evidence Sadegh Bakhtiari 1 Hojjat Izadkhasti 2 Seyed Komail Tayebi 3 Received: 2012/08/11 Accepted: 2013/04/16 Abstract P Keywords: 1- Introduction Based on the department of Economic and Social Affairs of UN for many low income countries, Official Development Assistance remains an important vehicle for financing development given low levels of domestic ( Department of Economics, Islamic Azad University, Khorasgan Branch, Isfahan, Iran Candidate of Economics, University of Isfahan, Isfahan, Iran (Corresponding Author).
A key argument of the aid dependency literature, for example, is that official development assistance lowers tax revenue, because it undermines the development of domestic institutions that support tax administration and good governance (Knack, 2000;Heller and Gupta, 2002; Brautigam and Knack, 2004; and Mosley, Hudson &Horrell2008).
(1998), Gang and Khan (1999, McGillivray (2000), Franco-Rodriguez (2000), Mavrotas (2002),MC-Gillivroy & Ouattara (2005), Ouattara (2006),Mc Gillivray(2009),Machado (2010),Clist&Morrissey (2011) and Benedek et al (2012), using fiscal response modelstry to answer questions such as does net official development assistance complement or substitute for government revenue?
Source: Authors The results in Table 2 show that net official development assistance has insignificant effect on government current expenditures, then contrary to the finding of Boone (1996) and others, we find no evidence that aid flows are used to finance government consumption expenditure.
6- Concluding Remarks This paper has investigated the relation between net official development assistance and public sector fiscal behavior using a panel data in Asian and Latin American countries over the period 1991-2010."