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Constraints to achieving the MDGs through domestic resource mobilization

Author

Listed:
  • Rob Vos
  • Marco V Sanchez
  • Keiji Inoue

Abstract

The present paper focuses on the role of domestic resource mobilization for financing poverty reduction strategies. Policy makers should be aware of important macroeconomic trade-offs associated with MDG strategies financed from tax increases or domestic borrowing. The trade-offs are largely intertemporal: can poor and middle-income countries absorb the initial financing costs in order to achieve expected gains in productivity and human development over time? This calls for a dynamic economy-wide framework to identify the importance of such trade-offs. The paper presents such a framework and illustrates its usefulness in applications for Costa Rica and Ecuador.

Suggested Citation

  • Rob Vos & Marco V Sanchez & Keiji Inoue, 2007. "Constraints to achieving the MDGs through domestic resource mobilization," Working Papers 36, United Nations, Department of Economics and Social Affairs.
  • Handle: RePEc:une:wpaper:36
    as

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    File URL: http://www.un.org/esa/desa/papers/2007/wp36_2007.pdf
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    References listed on IDEAS

    as
    1. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers DT/2003/10, DIAL (Développement, Institutions et Mondialisation).
    2. Escaith, Hubert & Inoue, Keiji, 2001. "Small economies' tariff and subsidy policies in the face of trade liberalization of the Americas," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34828, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. Paul Glewwe, 2002. "Schools and Skills in Developing Countries: Education Policies and Socioeconomic Outcomes," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 436-482, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Kunal Sen, "undated". "Towards Inclusive Financial Development for Achieving the MDGs in Asia and the Pacific," MPDD Working Paper Series WP/10/07, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    2. Nwachukwu, Jacinta, 2011. "Halving poverty in HIPC countries by 2015: How costly if achievable?," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 213-225, March.

    More about this item

    Keywords

    computable general equilibrium models; distribution; welfare and poverty; foreign aid; macroeconomic analyses of economic development.;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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