Aid and Oil in Papua New Guinea : Implications for the Financing of Service Delivery

This paper measures the extent to which both donor finance and resource revenues have contributed to higher rates of expenditure in key development sectors of the PNG economy-social services (including health and education) and infrastructure, between 1975 and 2010. Estimated elasticities are then compared against a hypothetical revenue scenario to assess the potential contribution that post-2014 LNG revenue inflows may have on increasing the financing available to these sectors