This paper examines the impact of foreign aid on public sector fiscal behaviour in Cote d'Ivoire. A special interest is the relationship between aid, debt servicing and debt, given that Cote d'Ivoire is a highly indebted country. The theoretical model employed differs from those of previous...

This paper employs a cointegrated vector autoregressive model to assess the growth effect of aid in Uganda over the period 1972-2008. Results show that aid in Uganda has had both direct and indirect beneficial association with growth; that it is the productivity and not the stead state level of...

Over the medium term, Bosnia and Herzegovina will go through a critical phase of fiscal adjustment and deeper economic reforms as it moves to orient its economy to the market and to increased integration with the rest of Europe. A key finding of this report is that the present size and scope of...

This paper assesses the optimal setting of fiscal spending and foreign exchange rate intervention policies in response to volatile foreign aid, in a small open economy model that incorporates typical features of low-income countries. Within a class of policy rules, it jointly considers the...