Fiscal effects of Foreign aid flows in Ethiopia

Most of the developing countries in the world are behaved by deficient resource economies, financial shortage to provide essential public goods. Thus, these nations use foreign finance as an important source of revenue to break worsening 'vicious circle' of poverty and improve living quality of the poor. However, these finances channeled through fiscal variables may have effects on these fiscal policy instruments. Based on this concept, this Book investigates effects of these foreign finance flows on the fiscal policy variables in the long run as well as in the short run in Ethiopia using advanced econometric applications and descriptive analysis. The findings and suggestions of this work is very important for International donors and NGOs how to disburse their funds, for research scholars, Policy makers and the Public to shed light to policy makers to understand which policy variable is more responsive and apply policy efforts.