This paper examines the so-popular anecdote according to which pro-cyclical fiscal policies are due to pro-cyclical behavior of financing. We address the question of whether or not pro-cyclical aid leads to pro-cyclical fiscal policies in SSA recipient countries. We employed panel data...

In this paper we empirically discuss whether or not external debt affects country’s governance. Indeed, indebted countries need some political governance reforms in order to send out a positive signal to international financial community and investors; and so improving business climate....