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Aid and Oil in Papua New Guinea: Implications for the Financing of Service Delivery

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  • Aaron Batten

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    (Development Policy Centre, Crawford School of Public Policy, The Australian National University)

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    Abstract

    This paper measures the extent to which both donor finance and resource revenues have contributed to higher rates of expenditure in key development sectors of the PNG economy—social services (including health and education) and infrastructure, between 1975 and 2010. Estimated elasticities are then compared against a hypothetical revenue scenario to assess the potential contribution that post-2014 LNG revenue inflows may have on increasing the financing available to these sectors.

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    File URL: http://devpolicy.anu.edu.au/pdf/papers/DP_4_-_Aid_and_oil_in_Papua_New_Guinea_implications_for_the_financing_of_service_delivery.pdf
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    Bibliographic Info

    Paper provided by Development Policy Centre, Crawford School of Public Policy, The Australian National University in its series Development Policy Centre Discussion Papers with number 1104.

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    Date of creation: Jun 2011
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    Handle: RePEc:een:devpol:1104

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    1. N. Van De Sijpe, 2010. "Is foreign aid fungible? Evidence from the education and health sectors," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 10/688, Ghent University, Faculty of Economics and Business Administration.
    2. Feeny, Simon & McGillivray, Mark, 2009. "Aid and Public Sector Fiscal Behaviour in Failing States," MPRA Paper 21801, University Library of Munich, Germany.
    3. Cashel-Cordo, Peter & Craig, Steven G., 1990. "The public sector impact of international resource transfers," Journal of Development Economics, Elsevier, vol. 32(1), pages 17-42, January.
    4. Todd Moss & Gunilla Pettersson & Nicolas van de Walle, 2006. "An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa," Working Papers 74, Center for Global Development.
    5. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, December.
    6. Heller, Peter S, 1975. "A Model of Public Fiscal Behavior in Developing Countries: Aid, Investment, and Taxation," American Economic Review, American Economic Association, vol. 65(3), pages 429-45, June.
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