This paper looks at public sector debt in developing countries, being concerned specifically with the relationship between aid inflows and the public sector borrowing requirement net of aid loans. After examining the public sector budget constraint and various conditions under which aid might...

This paper models the inter-temporal allocation of foreign development aid to Papua New Guinea (PNG). A formal theoretical model of aid allocation is developed, in which aid to any one country is determined jointly with aid to all other recipient countries. This is recognized in the econometric...

This paper examines the efficiency of public sector expenditures at achieving social sector outcomes in small island developing states (SIDS). Public sector efficiency is estimated using a stochastic production function (SPF) approach and panel data since 1990. A second stage of the analysis...

This paper surveys 50 years of empirical research on the macroeconomic impact of aid, looking mainly at studies examining the link between aid and growth. It argues that studies dating until the late 1990s produced either contradictory or inconclusive results. Aid either worked, or it didn’t,...

The literature on aid has come a long way in recent years, and as a result we now know much more about aid effectiveness than possibly ever before. But significant gaps in knowledge remain. One such gap is the effectiveness of aid in the so-called ‘fragile states’, countries with critically...

The paper presents an econometric accounting of the effective corporate tax rate in Australia for the years 1993 to 1996. The estimation is a panel of Australian firms that uses a specially gathered financial data base. Using fixed and random effects, the model specifies that the statutory tax...

Official flows account for close to half of capital flows to developing countries, and close to 90 per cent of receipts for Sub-Saharan Africa. This paper documents trends in these official flows over the last three decades. The most striking trend has been declining aid volume. Following two...

The Millennium Development Goals have become the frame of reference for most of the development community: the standard by which performance will ultimately be judged. Given their importance, considerable attention has been paid as to whether these goals will be met or not. The overwhelming...