How Effective Is Japanese Foreign Aid? Econometric Results from a Bounded Rationality Model for Indonesia
AbstractHow does Japanese aid influence the allocation of government expenditures and the raising of government revenues? Using a non-linear model with an asymmetric loss function the case of Japanese aid to Indonesia is examined at the macroeconomic level. It turns out that Japanese aid led to proportionately more development expenditures than other aid. It also might have been positively related to an increased effort by the Indonesian government to raise taxes. Economic explanations based on a bounded rationality models are advanced. Econometric and institutional explanations are also offered. The three sets of explanations can be seen as overlapping and complementary.
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 CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-164.
Length: 27 pages
Date of creation: Aug 2002
Date of revision:
Contact details of provider:
Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- SÃƒÂ©verine Blaise, 2009. "Japanese Aid as a Prerequisite for FDI : The Case of Southeast Asian Countries," Finance Working Papers 22767, East Asian Bureau of Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office).
If references are entirely missing, you can add them using this form.