Foreign aid and government fiscal behavior in Zambia

Inhaltsverzeichnis (Table of Contents)

• CHAPTER 1: INTRODUCTION
  • 1.1 Background
  • 1.1.1 Zambia Case Overview
  • 1.2 Aid Effectiveness
  • 1.2.1 Aid Volatility
  • 1.2.2 Aid Heterogeneity
  • 1.3 Problem Statement
  • 1.4 Research Objective
  • 1.5 Structure of the Study
• CHAPTER 2: LITERATURE REVIEW
  • 2.1 Theoretical Review
  • 2.1.1 Foreign Aid and Government Expenditure
  • 2.1.2 Foreign Aid and Government Revenue
  • 2.1.3 Foreign Aid and Domestic Borrowing
  • 2.1.4 Disaggregated Aid and Fiscal Aggregates
  • 2.2 Empirical Studies
• CHAPTER 3: METHODOLOGY
  • 3.1 The Fiscal Response Model
  • 3.2 Model Estimation
  • 3.3 Data and Variables
• CHAPTER 4: EMPIRICAL RESULTS
  • 4.1 Trend of Foreign Aid and Fiscal Aggregates
  • 4.2 Unit Root and Cointegration Analysis
  • 4.3 Vector Error Correction
    • 4.3.1 Model of Net Foreign Aid
    • 4.3.2 Model of Grants
    • 4.3.3 Model of Net Foreign Loans
  • 4.4 Results Summary and Study Limitations

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation investigates the relationship between foreign aid and government fiscal behavior in Zambia. It examines how inflows of foreign aid impact government investment, consumption, revenue, and domestic borrowing. The study aims to assess the effectiveness of foreign aid in achieving its intended development goals by analyzing the government's fiscal response to aid inflows.

• The impact of foreign aid on government fiscal behavior in Zambia
• The relationship between foreign aid and government spending, revenue, and domestic borrowing
• The effectiveness of foreign aid in promoting sustainable development
• The challenges and limitations of using foreign aid for development in Zambia
• Recommendations for improving the use of foreign aid for achieving development goals

Zusammenfassung der Kapitel (Chapter Summaries)

The first chapter introduces the study's background, providing an overview of the Zambian case and the concept of aid effectiveness. It discusses the challenges of aid volatility and heterogeneity and lays out the problem statement, research objective, and the study's structure. Chapter two delves into the literature review, examining theoretical perspectives on foreign aid and government expenditure, revenue, and domestic borrowing. It also explores empirical studies on the fiscal response to foreign aid.

Chapter three outlines the methodology used in the study. It describes the Fiscal Response Model (FRM), the model estimation techniques, and the data and variables employed. Chapter four presents the empirical results, examining the trends in foreign aid and fiscal aggregates, conducting unit root and cointegration analyses, and utilizing a Vector Error Correction (VEC) approach to estimate the relationship between foreign aid and fiscal aggregates. This chapter also summarizes the findings and discusses the limitations of the study.

Schlüsselwörter (Keywords)

The dissertation focuses on the relationship between foreign aid and government fiscal behavior, specifically in the context of Zambia. Key terms and concepts include: foreign aid, fiscal policy, government expenditure, revenue, domestic borrowing, aid effectiveness, fiscal response, Vector Error Correction model, Zambia, development economics.