Fiscal
Effects of Aid in
By
Berhanu
Alemu Zewdie
Faculty of
Business and Economics
June, 2008
Table of Contents
Table of contents 1
Acronyms 2
Abstract 5
Chapter one
Introduction
1.1 Statement of the problem 6
1.2 Hypothesis 7
1.3 Objectives of the study 8
1.4 Significance of the study 8
1.5 Scope and limitations of the study 9
Chapter two
Literature
review
2.1 Fiscal response 9
2.2 Studies Conducted in
Chapter three
Methodology
3.1 Qualitative methodology 14
3.1.1 Identified problems 14
3.1.2 Likely solutions and policy implications 17
3.2 Empirical methodology
3.2.1 Model specification 18
3.2.1 Data organization and analysis 23
3.2.3. Model description 24
Chapter four
Conclusion
and policy implication
4.1 Conclusion 31
4.2 Policy implications 33
Chapter five
5.1 References 34
ADB African Development Bank
ADF African Development Fund
ACP African
AMC Agricultural Marketing Corporation
ARDU Arsi Rural Development Unit
BADEA Arab
Bank for Economic Development in
BoFED Bureau of
Finance and Economic Development
CADU Chilalo Agricultural Development Unit
CCF2 The second Country Cooperation Framework
CRS Creditor Reporting System
CIDA Canadian International Development Agency
DAC Development Assistance Committee (of the OECD)
DAG Development Assistance Group
DRS Debtor Reporting System (of the World Bank)
ESAF Enhanced Structural Adjustment Facility (of the IMF)
EDF European Development Fund
EEC
EMCP Expenditure Management and Control Programme
EU European Union
EIB European Investment Bank