Efectos fiscales de la ayuda al desarrollo en Costa Rica

  1. Gozalo Delgado, Mariola
Journal:
Principios: estudios de economía política

ISSN: 1698-7616

Year of publication: 2007

Issue: 7

Pages: 53-70

Type: Article

More publications in: Principios: estudios de economía política

Abstract

Foregn aid flows are one of the main sources of external finance in many developing countries and thus a key element in fiscal policy. Understanding the way through aid flows have inlfuence into fiscal variables becomes an important issue in recent debate about aid effectiveness. This paper contributes to the fiscal response literature assuming that some aid can be anticipated by the recipient government in its budget plans. Model estimation using Costa Rica data finds that aid is mostly used to reduce borrowing, with little impact on investment.