Is GBS Still a Preferable Aid Modality?
AbstractThis paper attempts to assess the effect of General Budget Support (GBS) in developing countries by using panel data on government revenue, expenditure, and social indicators for the 10-year period from 1997 to 2006. We focus on the health sector as a representative social sector. The results show that GBS in fact increases the budget allocation for the health sector more than tax revenue does. However, the effect of government health expenditure on health indicators is not necessarily improved by the introduction of GBS, which indicates that the introduction of GBS alone has limited impact. The paper suggests that the complementarity between GBS and projects/programs focusing on human and institutional capacity development should be seriously considered.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by JICA Research Institute in its series Working Papers with number 50.
Date of creation: 09 Jan 2013
Date of revision:
Contact details of provider:
Postal: 6th-13th floors, Shinjuku Maynds Tower, 2-1-1 Yoyogi, Shibuya-ku, Tokyo 151-8558
Web page: http://jica-ri.jica.go.jp/
More information through EDIRC
General Budget Support ; fungibility ; intergovernmental transfer ; aid modality ; complementarity;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-03 (All new papers)
- NEP-DEV-2013-02-03 (Development)
- NEP-PPM-2013-02-03 (Project, Program & Portfolio Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anyanwu John & Andrew E. O. Erhijakpor, 2010. "Do International Remittances Affect Poverty in Africa?," African Development Review, African Development Bank, vol. 22(1), pages 51-91.
- Paul Collier & Anke Hoeffler, 2007. "Unintended Consequences: Does Aid Promote Arms Races?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(1), pages 1-27, 02.
- Tito Cordella & Giovanni Dell'Ariccia, 2007. "Budget Support Versus Project Aid: A Theoretical Appraisal," Economic Journal, Royal Economic Society, vol. 117(523), pages 1260-1279, October.
- Rajkumar, Andrew Sunil & Swaroop, Vinaya, 2008. "Public spending and outcomes: Does governance matter?," Journal of Development Economics, Elsevier, vol. 86(1), pages 96-111, April.
- Franco-Rodriguez, Susana & Morrissey, Oliver & McGillivray, Mark, 1998. "Aid and the Public Sector in Pakistan: Evidence with Endogenous Aid," World Development, Elsevier, vol. 26(7), pages 1241-1250, July.
- Filmer, Deon & Pritchett, Lant, 1999. "The impact of public spending on health: does money matter?," Social Science & Medicine, Elsevier, vol. 49(10), pages 1309-1323, November.
- International Monetary Fund, 2002.
"More on the Effectiveness of Public Spending on Health Care and Education: A Covariance Structure Model,"
IMF Working Papers
02/90, International Monetary Fund.
- Emanuele Baldacci & Maria Teresa Guin-Siu & Luiz De Mello, 2003. "More on the effectiveness of public spending on health care and education: a covariance structure model," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(6), pages 709-725.
- Carsten Hefeker, 2006.
"Project Aid or Budget Aid? The Interests of Governments and Financial Institutions,"
Review of Development Economics,
Wiley Blackwell, vol. 10(2), pages 241-252, 05.
- Hefeker, Carsten, 2005. "Project Aid or Budget Aid? The Interests of Governments and Financial Institutions," Proceedings of the German Development Economics Conference, Kiel 2005 19, Verein für Socialpolitik, Research Committee Development Economics.
- Hefeker, Carsten, 2004. "Project Aid or Budget Aid? The Interests of Governments and Financial Institutions," HWWA Discussion Papers 309, Hamburg Institute of International Economics (HWWA).
- van de Walle, Dominique & Mu, Ren, 2007.
"Fungibility and the flypaper effect of project aid: Micro-evidence for Vietnam,"
Journal of Development Economics,
Elsevier, vol. 84(2), pages 667-685, November.
- van de Walle, Dominique & Ren Mu, 2007. "Fungibility and the flypaper effect of project aid : micro-evidence for Vietnam," Policy Research Working Paper Series 4133, The World Bank.
- 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.
- Cashel-Cordo, P. & Craig, S.G., 1988. "The Public Sector Impact Of International Resource Transfers," Papers 24, Houston - Department of Economics.
- John E. Roemer & Joaquim Silvestre, .
"The ‘Flypaper Effect’ Is Not An Anomaly,"
Department of Economics
00-04, California Davis - Department of Economics.
- Roemer, John & Silvestre, Joaquim & Liu, Holly & Williams, Jeffrey, 2000. "The 'Flypaper Effect' Is Not an Anomaly," Working Papers 00-4, University of California at Davis, Department of Economics.
- John Roemer & Selva Demiralp & Holly Liu & Jeffrey Williams, 2003. "The 'Flypaper Effect' is not an anomaly," Working Papers 04, University of California, Davis, Department of Economics.
- Pack, Howard & Pack, Janet Rothenberg, 1990. "Is Foreign Aid Fungible? The Case of Indonesia," Economic Journal, Royal Economic Society, vol. 100(399), pages 188-94, March.
- Wilson, Sven E., 2011. "Chasing Success: Health Sector Aid and Mortality," World Development, Elsevier, vol. 39(11), pages 2032-2043.
- Feyzioglu, Tarhan & Swaroop, Vinaya & Zhu, Min, 1998. "A Panel Data Analysis of the Fungibility of Foreign Aid," World Bank Economic Review, World Bank Group, vol. 12(1), pages 29-58, January.
- Baldacci, Emanuele & Clements, Benedict & Gupta, Sanjeev & Cui, Qiang, 2008. "Social Spending, Human Capital, and Growth in Developing Countries," World Development, Elsevier, vol. 36(8), pages 1317-1341, August.
- John Nixon & Philippe Ulmann, 2006. "The relationship between health care expenditure and health outcomes," The European Journal of Health Economics, Springer, vol. 7(1), pages 7-18, March.
- Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
- Misselhorn, Mark & Harttgen, Kenneth, 2006.
"A Multilevel Approach to Explain Child Mortality and Undernutrition in South Asia and Sub-Saharan Africa,"
Proceedings of the German Development Economics Conference, Berlin 2006
20, Verein für Socialpolitik, Research Committee Development Economics.
- Kenneth Harttgen & Mark Misselhorn, 2006. "A Multilevel Approach to Explain Child Mortality and Undernutrition in South Asia and Sub-Saharan Africa," Ibero America Institute for Econ. Research (IAI) Discussion Papers 152, Ibero-America Institute for Economic Research.
- 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.
- Susana Franco-Rodriguez, & Mark McGillivray, & Oliver Morrissey, . "Aid and the Public Sector in Pakistan: Evidence with Endogenous Aid," Discussion Papers 98/2, University of Nottingham, CREDIT.
- Bailey, Stephen J & Connolly, Stephen, 1998. " The Flypaper Effect: Identifying Areas for Further Research," Public Choice, Springer, vol. 95(3-4), pages 335-61, June.
- Fisher, Ronald C., 1982. "Income and grant effects on local expenditure: The flypaper effect and other difficulties," Journal of Urban Economics, Elsevier, vol. 12(3), pages 324-345, November.
- Khilji, Nasir M. & Zampelli, Ernest M., 1994. "The fungibility of U.S. military and non-military assistance and the impacts on expenditures of major aid recipients," Journal of Development Economics, Elsevier, vol. 43(2), pages 345-362, April.
- Wagstaff, Adam, 2011. "Fungibility and the impact of development assistance: Evidence from Vietnam's health sector," Journal of Development Economics, Elsevier, vol. 94(1), pages 62-73, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Japan International Cooperation Agency Library).
If references are entirely missing, you can add them using this form.