The impact of foreign aid on public expenditure the case of Kenya by James Njeru

Cover of: The impact of foreign aid on public expenditure | James Njeru

Published by African Economic Research Consortium in Nairobi .

Written in English

Read online

Places:

  • Kenya,
  • Kenya.

Subjects:

  • Economic assistance -- Kenya.,
  • Kenya -- Appropriations and expenditures.

Edition Notes

Book details

StatementJames Njeru.
SeriesAERC research paper ;, 135, AERC research paper (Online) ;, 135.
ContributionsAfrican Economic Research Consortium.
Classifications
LC ClassificationsHC800.A1
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL3389877M
LC Control Number2004616575

Download The impact of foreign aid on public expenditure

Foreign aid, particularly multilateral aid, exhibits a positive impact on public investment to the same degree as in the pre-HIPC period.

Ethnic fractionalization directs public The impact of foreign aid on public expenditure book away from the social sector. Government effectiveness has a positive impact on both spending in the social sector and public investment.

Request PDF | The Impact of Foreign Aid on Public Expenditure: The Case of Kenya | Foreign aid represents an important source of finance in most countries in sub-Saharan Africa (SSA), where it Author: James Njeru.

There is a direct, significant relationship between development spending and aid, supporting the view that the government responds to aid freezes by cutting development expenditure. Evidently, the flow of foreign aid influences government spending patterns.

As found in other country studies, aid leads to higher government spending in Kenya. Using Tanzania as a case, we illustrate how a computable general equilibrium (CGE) model can be used to evaluate the impact of aid (budget or sectoral support) on poverty (income) and other social development targets in a context that considers trade‐offs between public spending Cited by: 2.

For instance, (Jifar, ) has examined the impact of foreign aid on various public spending for a period covering /67 to /99 in Ethiopia using aid fungiblity model for an analyses on four developmental (agriculture, education, construction, and transport and communication) and three non-development(defense, general service and debt.

May Using a model of aid fungibility, the authors examine the relationship between foreign aid and public spending. Based on a panel of cross-country and time-series data, their results show that roughly 75 cents of every dollar given in net development assistance goes to current spending and 25 cents to capital spending in the recipient countries.

Foreign aid's impact on public spending (English) Abstract. Using a model of aid fungibility, the authors examine the relationship between foreign aid and public spending.

Based on a panel of cross-country and time-series data, their results show that roughly 75. aid freezing affects only the newly committed foreign aid and especially aid from multilateral sources and does not involve either emergency aid or project aid contracted earlier actual development expenditure has always fallen short of the budgeted estimates while current expenditure has been increasing, implying that any effects of an aid.

the linkage between foreign aid and government expenditure and to estimate the impact of changes in the flow of foreign aid on public expenditures. The rest of the paper is organized as follows: In the next subsection, we formulate the research problem, and follow this with a detailed review of the public expenditure process in Kenya in Section 2.

The impact of foreign aid on public expenditure book On average, between andUganda received foreign aid worth 11 per cent of its GDP.

This long-term interaction of aid with government spending, tax revenues and public borrowing, appears to have led to a situation where development assistance has become incorporated into the country’s fiscal calculations on par with those other.

IMPACT OF FOREIGN AID ON PUBLIC EXPENDITURE IN PAKISTAN. The overall impact that this help could have among developing countries is, therefore, very limited.

In fact the US, the largest contributor in nominal terms, was spending, back in% of its GDP with the military but just % of its GDP with official development assistance (foreign aid). project "Foreign Aid and the Composition of Public Spending" (RPO ).

Copies of the paper are available free from the World Bank, H Street NW, Washington, DC Foreign aid's impact on public spending (Inglês) Resumo. Using a model of aid fungibility, the authors examine the relationship between foreign aid and public spending.

Based on a panel of cross-country and time-series data, their results show that roughly 75 cents of every dollar given in net development. ReseaRch BRief The impact of foreign aid on the fiscal behaviour of the Ugandan government •eign aid is a significant element of Uganda’s long-run fiscal • aid is associated with increased tax collection effort and public spending in Uganda.

• Development assistance is also associated with reduced domestic borrowing in Uganda. "This paper focuses on the case of Kenya, a country that has experienced two major donor-aid freezes. The paper uses both aggregated and disaggregated data to develop the linkage between foreign aid and government expenditure and to estimate the impact of changes in the flow of foreign aid on public.

Downloadable. Foreign aid represents an important source of finance in most countries in sub-Saharan Africa (SSA), where it supplements low savings, narrow export earnings and thin tax bases.

In recent years the donor community has become more stringent about fiscal discipline and good policies, which has led to freezing of donor funds to governments that do not conform with aid conditionalities.

Foreign aid's impact on public spending. Washington, DC: World Bank, Policy Research Dept., Public Economics Division, [] (OCoLC) Material Type: Government publication, International government publication, Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Tarhan N Feyzioğlu; Vinaya Swaroop.

This could happen, for instance, because of aid illusion, a situation where the government misperceives the actual value of the aid inflow, or the spending conditions attached to the inflow (McGillivray and Morrissey ()). This might arise in an environment of imperfect information and weak public expenditure management.

Within a framework of public expenditure choice, the paper investigates the impact of the external debt-servicing constraint, as well as external aid, on government expenditure allocation in sub-Saharan Africa countries after the launch of the Heavily Indebted Poor Countries Initiative.

Swaroop, V., S. Jha and A. Rajkumar (). ‘Fiscal Effects of Foreign Aid in a Federal System of Governance: The Case of India’. Journal of Public Economics, 77, – CrossRef Google Scholar. Assessing the Impact of Foreign Aid: Value for Money and Aid for Trade provides updated information on how to improve foreign aid programs, exploring the concept and practice of impact assessment within the sometimes-unproblematic approaches advocated in current literature of value for money and aid for trade.

Contributors from multi-lateral agencies and NGOs discuss the changing patterns of. Foreign Aid and Growth, Page 2 Introduction The role of foreign aid in the growth process of developing countries has been a topic of intense debate. Foreign aid is an important topic given its implications for poverty reduction in developing countries.

Previous empirical studies on foreign aid and economic growth generate mixed results. Aid, Public Expenditure, and Dutch Disease, CSAE Working Paper Oxford: Center for the Study of African Economies. Afonso, José Roberto R., and Luiz de Mello. Get this from a library.

Foreign aid's impact on public spending. [Tarhan N Feyzioglu; Vinaya Swaroop; Min Zhu; World Bank. Policy Research Department. Public Economics Division.]. James Njeru in his Research, The impact of foreign aid on public expenditure explains that for many of the Sub – Sharan countries, taking economic aid from International Monetary Funds and The World Bank constitutes as an important participation for the sake of running economical as well as political structures of the country.

Influence of aid – two eras of donor involvement Sub-sectoral breakdown of aid to education Trends in multilateral and bilateral Sources Aid to education and development vs.

recurrent expenditure Section 3: Impact of Public Financing – Trends in outcomes of education - Literacy rates Student teacher ratios. This paper models fiscal effects of foreign aid in a federal system of governance. Our main innovation is to incorporate the inter-governmental fiscal link in examining economic fungibility of foreign aid.

The model is applied to the expenditure decisions of the central government of India. The two main findings are: (i) Foreign aid merely substitutes for spending that the government would. Impact Aid was designed to assist local school districts that have lost property tax revenue due to the presence of tax- exempt Federal property, or that have experienced increased expenditures due to the enrollment of federally connected children, including children living on Indian lands.

The Impact Aid law (now Title VII of the Elementary. foreign aid and economic growth remains at the center of debates on aid effectiveness. The purpose of this literature review is to survey the available body of research done on the effectiveness of foreign aid as an agent for economic development of recipient countries, most of.

Public expenditure is spending made by the government of a country on collective needs and wants such as pension, provisions (such as education, healthcare and housing), security, infrastructure, etc.

Until the 19th century, public expenditure was limited as laissez faire philosophies believed that money left in private hands could bring better returns. A foreign aid or foreign lending policy that focuses exclusively on project financing may have unintended consequences, report the authors.

New research shows that aid intended for crucial social and economic sectors often merely substitutes for spending that recipient governments would have undertaken anyway and the funds that are thereby freed up are spent for other purposes. U.S. Agency for International Development Open Menu Notice: The Foreign Aid Explorer and websites are consolidating.

Learn more about the consolidation effort. In addition, an interaction term between foreign aid and a measure of macroeconomic policies is utilized to determine if economic policy has an impact on the effectiveness of development assistance. This study finds that greater foreign aid is associated with lower levels of HDI after controlling for GDP and pro-poor public expenditure.

Australian Aid Budget Summary Global Programs [PDF KB] Australian Aid Budget Summary Other Government Departments [PDF KB] Australian Aid Budget Summary Appendices, glossary and abbreviations [PDF KB] Actual aid expenditure. Australia's Official Development Assistance: Statistical Summary   The Marshall Plan was initiated by the Truman administration, and in the s, when votes in the Congress on foreign aid spending were close, the appropriations bill garnered more Democratic than.

Foreign aid as a form of capital flow is novel in both its magnitude and its global coverage. Though historical examples of countries paying “bribes” (see below) or “reparations” to others are numerous, the continuing large-scale transfer of capital from rich-country governments to those of poor countries is a post–World War II phenomenon.

Foreign Aid and the Education Sector: Programs and Priorities Congressional Research Service 1 The Role of Education Assistance in Development This report is a descriptive profile of recent U.S.

foreign aid education sector activities, outlining actors, policy, funding levels, and programs. The education sector has long been considered. Abstract.

Using a model of aid fungibility, the authors examine the relationship between foreign aid and public spending. Based on a panel of cross-country and time-series data, their results show that roughly 75 cents of every dollar given in net development assistance goes to current spending and 25 cents to capital spending in the recipient countries.

Public expenditure can be financed through taxes, public debt, money emission, international aid. Composition First, public expenditure can be classified in terms of the kind of goods and services bought, also with very general items: 1. capital goods; 2.

consumption goods; 3. personnel expenditure. foreign aid, and with the way development assistance 1 See, for example, the much-cited report commissioned by the World Bank and the International Monetary Fund (IMF) and produced by Robert Cassen and colleagues in the mids (Cassen et al., ), or Roger Riddell’s more recent review and assessment of existing evidence on the.Source: British Foreign Policy Group analysis of UK Government expenditure reports, —79 & (Jan ) onwards.

Funding a Global Britain. The UK’s decision to leave the EU will substantially reduce its overseas spending—by an amount well over a third of the aid budget—and the FCDO faces a major challenge to maintain British.the impact of globalization on health in particular countries, or of its effects on particular health problems (e.g.

HIV/AIDS, antimicrobial resistance) ordeterminantsofhealth(toqualityhealth care, nutrition, and diet). Although the relevance, nature, and strength of the various components of globalization and the different aspects of.

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