The objective of this paper is to investigate the impact of public expenditures on economic growth using time series data on Tanzania (for 32 years). We formulate a simple growth accounting model, adapting Ram (1986) in which total government expenditure is disaggregated into expenditure on...

The Ugandan economy has been transformed since 1987. We ask how effective have the reforms been in increasing the incentives to exporters. Uganda has made significant progress in reducing the anti-export bias in its trade policy. Taxes on exports have been abolished, the foreign exchange market...

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...

Two findings have been common in the literature on the impact of foreign aid on public sector fiscal behaviour in developing countries. The first is that aid "sticks" to higher levels of recipient government expenditure, with aggregate expenditure often rising by more than the value of the aid...

Our objective is to test the hypothesis that ai d can improve the welfare of the poor. Part of this effect is direct, if aid is targeted on the poor, and part is indirect, via the transmission channel of aid-financed public spending on social services - sanitation, education and health. This...

Tanzania is among the many African countries that have engaged in agricultural liberalisation since the mid-1980s, in the hope that reforms which introduce price incentives and efficient marketing will encourage producers to respond. This paper assesses that claim by examining the supply...

Theoretical predictions and empirical evidence on the impact of foreign aid and fiscal policy on growth are mixed. This paper examines the effect of fiscal variables (government expenditure and revenue) and aid on growth using annual time series data for Kenya over the period 1964 - 2002....

This paper contributes to the literature on aid and economic growth. We posit that it is not the level of aid flows per se but the stability of such flows that determines the impact of aid on economic growth. Three measures of aid instability are employed. One is a simple deviation from trend,...

It is clear from the implications of growth theory that the impact of aid depends on how it affects savings, investment and government behaviour. In respect of low-income countries, which are the principal aid recipients and the economies for which the issue of the impact of aid on growth is...

This paper contributes to the literature on FDI and economic growth. We deviate from previous studies by introducing measures of the volatility of FDI inflows. As introduced into the model, these are predicted to have a negative effect on growth. We estimate the standard model using...