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How do OECD donor countries distribute foreign aid among developing countries during their fiscal episodes?

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  • Sena Kimm GNANGNON

Abstract

In this paper, we investigate the effects of fiscal episodes in Organization for Economic Cooperation and Development (OECD) donor countries on the distribution of their aid expenditures towards developing countries. We use descriptive statistics provided by Alesina and Ardagna (2010) on fiscal episodes and regression models to perform this analysis. The results show evidence that the “aid expenditures variables” respond variably to the episodes of large changes in fiscal policy in OECD donor countries. In addition, European Union and Non-European Union countries behave differently in terms of aid expenditures distribution during their fiscal episodes.

Suggested Citation

  • Sena Kimm GNANGNON, 2013. "How do OECD donor countries distribute foreign aid among developing countries during their fiscal episodes?," Working Papers 201301, CERDI.
    • Handle: RePEc:cdi:wpaper:1417
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    More about this item

    Keywords

    Foreign aid; Fiscal consolidation; Fiscal stimuli; OECD Countries;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F35 - International Economics - - International Finance - - - Foreign Aid

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