An important feature of aid to developing countries is that it is given to the government. As a result, aid should be expected to affect fiscal behaviour. Traditional approaches to modelling fiscal effects are beset by theoretical and empirical problems. This paper applies techniques developed...

It is common practice in empirical development macroeconomics to use cross-country samples for econometric analyses. One issue that is rarely addressed in this literature is the appropriateness of pooling when panels are used. In particular, does it matter to the results if the countries exhibit...

This paper is the second in an analysis of a survey of 83 manufacturing enterprises in Tanzania. The previous analysis reported that large firms are more likely to export than other firms, and more large firms sustain their investments than smaller firms. Also, parastatals, including firms with...

Since the mid-1980s Tanzania has implemented a number of trade and fiscal policy reforms that were partly intended to encourage increased export activity by manufacturing firms. Macroeconomic data suggest that there has been little response. To understand this lack of response we need to...

This paper demonstrates that an empirical link between aid and trade exist (for some donor-recipient pairs), but that the nature of this linkage is complex and can take a variety of forms. By identifying this complexity (and variability) we challenge the assertion, often made in debates...

This paper reports on trends and levels of capital inflows, and the volatility of such inflows, to a sample of 60 developing countries over the period from 1970 to 1997. The data cover aid and other development finance as the principal forms of official flows, FDI and other private flows, and...