The study examines the role of foreign capital and remittance inflows in the domestic savings of 63 developing countries for 1971-2010, paying attention to likely differential effects of FDI, portfolio investment, foreign aid and remittance. The conventional homogeneous panel estimates suggest...

In common with other archipelagic countries, Indonesia is vulnerable to such impacts of climate change as prolonged droughts, increased frequency in extreme weather events, and heavy rainfall resulting in floods. These threats, coupled with the fact that Indonesia has been declared one of the...

We investigate the dynamic effects of five different fiscal shocks on the US economy using a structural vector autoregressive (SVAR) model that uses Blanchard-Quah type restrictions. We find that an increase in indirect taxes or in corporate taxes has a contractionary effect on the economy,...

We study the joint determination of fertility subsidies and Social Security taxes in an overlapping generations model where agents are heterogeneous in endowments. In equilibria where Social Security is valued, old and poor young agents form a coalition that sustains Social Security. When voting...

Though the literature on federalism explains the economic gains from decentralised decision making and related issues in India, there are very few empirical studies examining the causal relationship between decentralisation and development outcomes. Much of the demonstrated gains are in the...

This paper presents a brief overview of the extant fiscal situation in South Asian countries. In particular, I emphasize low tax/GDP ratios and inelastic expenditure/GDP ratios which then lead to structurally entrenched fiscal deficits. The paper also reports on the sustainability of fiscal and...

Developed countries have pledged to mobilise $100 billion per year by 2020 for climate change action in developing countries. Progress on financing is necessary to ensure broader progress on climate change cooperation. Supporting the global commitment is in Australia's interests, since climate...

New forms of aid, including “philanthrocapitalism” such as The Bill and Melinda Gates Foundation, are rapidly altering the international aid architecture for health. These organisations have financial power, actively shape agendas and influence policy. The rise of non-traditional donor...

This paper measures the extent to which both donor finance and resource revenues have contributed to higher rates of expenditure in key development sectors of the PNG economy—social services (including health and education) and infrastructure, between 1975 and 2010. Estimated elasticities are...

This paper provides an overview of issues relating to aid effectiveness. It argues that it is impossible to give a definitive answer to the question of whether aid is effective, and that it is more useful to ask what can be done to make aid more effective. The paper then groups the various...