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Foreign aid, government behaviour and fiscal policy outcomes in Papua New Guinea

Batten, Aaron


Foreign aid in Papua New Guinea (PNG) has been heavily criticised on the grounds that it has undermined incentives for domestic revenue collection, encouraged irresponsible expenditure behaviour and high levels of public debt, and contributed to the poor composition of government spending towards wasteful expenditure items. This paper seeks to determine what impact foreign grants have had on the fiscal behaviour of the PNG Government with the use of a dynamic Vector Error Correction Model which...[Show more]

CollectionsANU Research Publications
Date published: 2009
Type: Working/Technical Paper


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