July 1, 2008 Thesis Open Access

ADDIS YIMER G/EGZIABHEAR

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{
  "description": "<p>The main objective of this study is to access the fiscal response to external aid inflows in Ethiopia, specifically<br>\nto study the impact of foreign aid inflows on public expenditure, revenue and domestic borrowing in Ethiopia.<br>\nThe paper provides a critical review of literature on the aid-fiscal relation, and then applies a VAR/VECM<br>\nand impulse response analysis, using data for the period 1961-2007.The study is a good indication that<br>\ndisaggregated data utilization could point out which variables are responsive to changes in external shocks. By<br>\nstudying the particular fiscal dynamics in Ethiopia using three separate models, the study finds that foreign aid<br>\nin the form of grant and loan has had a positive impact on government expenditure (loan being pro-investment<br>\nand grant being pro-consumption), both have a negative impact on domestic borrowing (domestic borrowing<br>\nbeing more elastic to a change in grant) and indirect tax collection and no effect on the direct one. Moreover, by<br>\nincorporating total ODA inflow in a separate model, the study tried to analyze the joint impact of budgetary<br>\ngrant and loan, and that of off -budgetary ODA. The results support the conclusion that aid inflows increase<br>\npublic expenditure and are biased to be pro- investment. While total ODA flows have a negative impact on<br>\nrevenue of the government and borrowing from domestic sources, suggesting that aid and domestic borrowing are<br>\nclose substitutes and that higher aid flows displace domestic revenues. In the final analysis to mitigate the<br>\nundesirable impacts of aid, building a better national capacity to collect domestic revenue and regulatory<br>\nschemes by donors to avoid possible problems of aid fungiblity should be put in place.</p>", 
  "license": "http://www.opendefinition.org/licenses/cc-by", 
  "creator": [
    {
      "@type": "Person", 
      "name": "ADDIS YIMER G/EGZIABHEAR"
    }
  ], 
  "headline": "A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ADDIS ABABA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ECONOMICS (ECONOMIC POLICY ANALYSIS)", 
  "image": "https://zenodo.org/static/img/logos/zenodo-gradient-round.svg", 
  "datePublished": "2008-07-01", 
  "url": "https://nadre.ethernet.edu.et/record/933", 
  "@context": "https://schema.org/", 
  "identifier": "https://doi.org/10.20372/nadre:933", 
  "@id": "https://doi.org/10.20372/nadre:933", 
  "@type": "ScholarlyArticle", 
  "name": "A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ADDIS ABABA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ECONOMICS (ECONOMIC POLICY ANALYSIS)"
}