Ira Gang
Rutgers University
Department of Economics
E-mail: gang@economics.rutgers.edu
Item Number: [J24]
Title: How Tied is Aid? The Case of Soviet Economic Assistance to India,
1961-84
Abstract: This paper examines where foreign economic assistance is
spent by recipient governments. It specifically analyzes Soviet and
non-Soviet aid to India for the period 1961-1984, asking whether or not the
aid was used for development projects. A budgetary model is developed,
and econometric analysis is applied to aggregate budgetary data. It
is found that though marginal increases in tax revenues mostly "spillover"
into increased government current consumption, foreign aid, in general, does
not spillover but instead augments capital spending as intended by donors.
This is true for Soviet as well as non-Soviet aid, despite the looser tying-in
provisions of the latter.
Reference: Ira N. Gang and Omkar Goswami, How Tied is Aid? The
Case of Soviet Economic Assistance to India, 1961-84, Economic Systems,
15 (1991) 177-193.
Co-Author Information:
Omkar Goswami
Confederation of Indian Industries
E-Mail: omkar_goswami@hotmail.com
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