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The Fiscal Effects of Aid in Ghana

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  • Robert Darko Osei
  • Oliver Morrissey
  • Tim Lloyd

Abstract

An important feature of aid to developing countries is that it is given to the government. As a result, aid should be expected to affect fiscal behaviour, although theory and existing evidence is ambiguous regarding the nature of these effects. This paper applies techniques developed in the 'macroeconometrics' literature to estimate the dynamic linkages between aid and fiscal aggregates. Vector autoregressive methods are applied to 34 years of annual data in Ghana to model the effect of aid on fiscal behaviour.

Suggested Citation

  • Robert Darko Osei & Oliver Morrissey & Tim Lloyd, 2005. "The Fiscal Effects of Aid in Ghana," WIDER Working Paper Series RP2005-61, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2005-61
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2005-61.pdf
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    References listed on IDEAS

    as
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