Donor funding and crowding out of public spending: Evidence from low and middle-income countries

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dc.contributor.advisorAlagidede, Paulen_ZA
dc.contributor.authorShine, Ritta Sabbasen_ZA
dc.date.accessioned2018-11-07T13:03:52Z
dc.date.available2018-11-07T13:03:52Z
dc.date.issued2015en_ZA
dc.description.abstractIn many low-resource settings agricultural output and public spending on agriculture are in decline, raising questions about the effectiveness of agricultural aid. To understand why these trends are occurring, we examined factors that affect the share of government spending on agriculture. Using a sample of 66 low- and middle-income countries from 1996-2010 we use dynamic panel regression models to explore: (1) the impact of agricultural aid on public expenditure to agriculture, and (2) the impact of aid on domestic resource mobilisation, which indirectly affects public expenditures. Our results provide evidence of a strong substitution effect, especially in low-income countries, suggesting aid to agriculture is treated as fungible. We also found evidence that aid loans resulted in higher tax revenues, while aid grants decreased tax effort, which may account for decreasing public investment in agriculture. To improve aid effectiveness, donors need to work with recipients to understand country needs and the fiscal environment of the receiving government.en_ZA
dc.identifier.apacitationShine, R. S. (2015). <i>Donor funding and crowding out of public spending: Evidence from low and middle-income countries</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Research of GSB. Retrieved from http://hdl.handle.net/11427/29047en_ZA
dc.identifier.chicagocitationShine, Ritta Sabbas. <i>"Donor funding and crowding out of public spending: Evidence from low and middle-income countries."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Research of GSB, 2015. http://hdl.handle.net/11427/29047en_ZA
dc.identifier.citationShine, R. 2015. Donor funding and crowding out of public spending: Evidence from low and middle-income countries. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Shine, Ritta Sabbas AB - In many low-resource settings agricultural output and public spending on agriculture are in decline, raising questions about the effectiveness of agricultural aid. To understand why these trends are occurring, we examined factors that affect the share of government spending on agriculture. Using a sample of 66 low- and middle-income countries from 1996-2010 we use dynamic panel regression models to explore: (1) the impact of agricultural aid on public expenditure to agriculture, and (2) the impact of aid on domestic resource mobilisation, which indirectly affects public expenditures. Our results provide evidence of a strong substitution effect, especially in low-income countries, suggesting aid to agriculture is treated as fungible. We also found evidence that aid loans resulted in higher tax revenues, while aid grants decreased tax effort, which may account for decreasing public investment in agriculture. To improve aid effectiveness, donors need to work with recipients to understand country needs and the fiscal environment of the receiving government. DA - 2015 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2015 T1 - Donor funding and crowding out of public spending: Evidence from low and middle-income countries TI - Donor funding and crowding out of public spending: Evidence from low and middle-income countries UR - http://hdl.handle.net/11427/29047 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/29047
dc.identifier.vancouvercitationShine RS. Donor funding and crowding out of public spending: Evidence from low and middle-income countries. [Thesis]. University of Cape Town ,Faculty of Commerce ,Research of GSB, 2015 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/29047en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentResearch of GSBen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherDevelopment Financeen_ZA
dc.titleDonor funding and crowding out of public spending: Evidence from low and middle-income countriesen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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