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Is GBS Still a Preferable Aid Modality?

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  • Furukawa, Mitsuaki
  • Takahata, Junichiro

Abstract

This 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.

Suggested Citation

  • Furukawa, Mitsuaki & Takahata, Junichiro, 2013. "Is GBS Still a Preferable Aid Modality?," Working Papers 50, JICA Research Institute.
    • Handle: RePEc:jic:wpaper:50
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    References listed on IDEAS

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    Cited by:

    1. Furukawa, Mitsuaki & Mikami, Satoru, 2014. "Is Country-system-based Aid Really Better than Project-based Aid? Evidence from Rural Water Supply Management in Uganda," Working Papers 64, JICA Research Institute.
    2. Theodore Ahlers & Hiroshi Kato & Harinder S. Kohli & Callisto Madavo & Anil Sood (ed.), 2014. "Africa 2050: Realizing the Continent's Full Potential," Books, Emerging Markets Forum, edition 1, number africa2050, May.

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    Keywords

    General Budget Support ; fungibility ; intergovernmental transfer ; aid modality ; complementarity;
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