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Aid, Debt Burden and Government Fiscal Behaviour in Côte d'Ivoire


  • Mark McGillivray
  • Bazoumana Ouattara


This paper examines the impact of foreign aid on public sector fiscal behaviour in Côte d'Ivoire. A special interest is the relationship between aid, debt servicing and debt, given that Côte d'Ivoire is a highly indebted country. The theoretical model employed differs from those of previous studies by highlighting the interaction between debt servicing and the other fiscal variables, providing information on aid and fiscal behaviour that its predecessors cannot. This model is estimated using 1975--99 time series data. Two key findings emerge: (i) the majority of aid inflows are allocated to expenditure on debt servicing; and (ii) these inflows are associated with increases in the level of public debt. Copyright 2005, Oxford University Press.

Suggested Citation

  • Mark McGillivray & Bazoumana Ouattara, 2005. "Aid, Debt Burden and Government Fiscal Behaviour in Côte d'Ivoire," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(2), pages 247-269, June.
  • Handle: RePEc:oup:jafrec:v:14:y:2005:i:2:p:247-269

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    References listed on IDEAS

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    Cited by:

    1. Roberto Machado, 2010. "Aid and fiscal policy in Nicaragua: A fiscal response analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(4), pages 483-502.
    2. Tony Addison & George Mavrotas & Mark McGillivray, 2005. "Development assistance and development finance: evidence and global policy agendas," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(6), pages 819-836.
    3. Hisali, Eria & Ddumba-Ssentamu, John, 2013. "Foreign aid and tax revenue in Uganda," Economic Modelling, Elsevier, vol. 30(C), pages 356-365.
    4. repec:bla:rdevec:v:21:y:2017:i:3:p:627-663 is not listed on IDEAS
    5. repec:lje:journl:v:19:y:2015:i:1:p:71-103 is not listed on IDEAS
    6. Addison, Tony & Mavrotas, George & McGillivray, Mark, 2005. "Aid, Debt Relief and New Sources of Finance for Meeting the Millennium Development Goals," WIDER Working Paper Series 009, World Institute for Development Economic Research (UNU-WIDER).
    7. T. Bhavan & Changsheng Xu & Chunping Zhong, 2011. "Growth effect of foreign aid and volatility in South Asia," International Journal of Development Issues, Emerald Group Publishing, vol. 10(3), pages 204-213, September.
    8. Danny Cassimon & Bjorn Van campenhout, 2008. "Comparative Fiscal Response Effects Of Debt Relief: An Application To African Hipcs," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 427-442, September.
    9. Bazoumana Ouattara, 2006. "Aid, debt and fiscal policies in Senegal," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1105-1122.
    10. Simon Feeny, 2006. "Policy preferences in fiscal response studies," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1167-1175.
    11. Łukasz Marć, 2017. "The Impact of Aid on Total Government Expenditures: New Evidence on Fungibility," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 627-663, August.
    12. Feeny, Simon & McGillivray, Mark, 2010. "Aid and public sector fiscal behaviour in failing states," Economic Modelling, Elsevier, vol. 27(5), pages 1006-1016, September.
    13. Musharraf Rasool Cyan & Jorge Martinez-Vazquez & Violeta Vulovic, 2014. "New approaches to measuring tax effort," Chapters,in: Taxation and Development: The Weakest Link?, chapter 2, pages 27-68 Edward Elgar Publishing.
    14. Lukasz Marc, 2012. "New Evidence on Fungibility at the Aggregate Level," Tinbergen Institute Discussion Papers 12-083/2, Tinbergen Institute.
    15. Nicolas Van de Sijpe, 2013. "Is Foreign Aid Fungible? Evidence from the Education and Health Sectors," World Bank Economic Review, World Bank Group, vol. 27(2), pages 320-356.

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