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Impact of Aid and Public Spending—A Macro–micro Framework
Author(s) -
Levin Jorgen,
Lofgren Hans,
Dessus Sebastien
Publication year - 2015
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3190
Subject(s) - poverty , millennium development goals , tanzania , macro , economics , development economics , micro level , international development , human development (humanity) , public spending , development aid , economic growth , public economics , political science , economic impact analysis , socioeconomics , politics , computer science , microeconomics , law , programming language
In this study, we have used Tanzania as a case to illustrate how a simulation model can be used to evaluate the impact of aid and the trade‐offs between public spending categories and their impact on income poverty and other social development targets. Our results suggest the following. First, under plausible growth, fiscal and foreign assistance assumptions, in line with observed patterns, the enormous difficulty of achieving most millennium development goals (MDGs) by 2015 is evident. Second, there existed trade‐offs between the various MDGs, in particular between achievements for poverty and other social development targets. © 2015 UNU‐WIDER. Journal of International Development published by John Wiley & Sons, Ltd.