%0 Journal Article
%T De Facto Fiscal Space in Donor
%A Sena Kimm Gnangnon
%J South Asian Journal of Macroeconomics and Public Finance
%@ 2321-0273
%D 2019
%R 10.1177/2277978719835615
%X This article investigates the impact of fiscal space in donor-countries on their official development aid (ODA) supply. It relies on the indicator of ¡®De Facto Fiscal Space¡¯ proposed by Aizenman and Jinjarak (The Fiscal Stimulus of 2009¨C10: Trade Openness, Fiscal Space and Exchange Rate Adjustment, NBER Working Paper 17427, 2011) and on a panel of 22 donor-countries over the period 1964¨C2015. The analysis considers four measures of ODA, including the total net aid transfers (NAT), ODA allocated to all sectors in the recipient-countries (ODAALLSECT), ODA allocated to the trade sector and ODA provided for the non-trade sector. The empirical results show that greater fiscal space in donor-countries influences positively donors¡¯ NAT, their ODA allocated to all sectors as well as their ODA allocated to the non-trade sector in recipient-countries. At the same time, greater fiscal space in donor-countries does not influence ODA relating to the trade sector. Furthermore, the impact of fiscal space on ODA supply to the trade and non-trade sectors depends on donor-countries¡¯ level of economic wealth. Jel Classification: E62, F3
%K De Facto Fiscal Space
%K development aid
%K development related to trade sector
%K development aid related to non-trade sector
%U https://journals.sagepub.com/doi/full/10.1177/2277978719835615