The Fiscal Impact of Aid Flows: Evidence from Ethiopia

Fiscal; Impact; Aid; Flows; Evidence; Ethiopia; Poverty

The Impact of Foreign Aid on Government Spending, Revenue and Domestic Borrowing in Ethiopia

The main aim of this Working Paper is to assess the impact of foreign aid inflows on public expenditure, revenue and domestic borrowing in Ethiopia. The paper provides a literature overview of the fiscal effects of aid, and then applies a fiscal response model to Ethiopian data for the period 1964-2005. Since the empirical literature finds little evidence of common cross-country patterns, this highlights the important role that country-specific circumstances play in determining fiscal outcomes. By studying the particular fiscal dynamics in Ethiopia, the paper finds that foreign aid has had a positive impact on government investment, while its effect on current expenditure has been less pronounced. Moreover, by disaggregating aid inflows into grants and foreign lending, the paper is able to analyse their specific roles and impacts. The results support the conclusion that aid inflows increase public investment, with loans having a stronger impact than grants. Both aid grants and loans have a strong negative effect on domestic borrowing, suggesting that aid and domestic financing are close substitutes. Finally, the results also appear to support the hypothesis that higher aid flows displace domestic revenues. However, this particular finding does not seem to be robust across the sample.Foreign Aid, Aid Effectiveness, Fiscal Response Literature, Ethiopia

El Impacto Fiscal de la Asistencia Financiera: Evidencia de Etiopía

El Impacto Fiscal de la Asistencia Financiera: Evidencia de Etiopía

O Impacto Fiscal dos Fluxos de Ajuda: Evidências da Etiópia

O Impacto Fiscal dos Fluxos de Ajuda: Evidências da Etiópia

Fiscal Dynamics in Ethiopia: The Cointegrated VAR Model with Quarterly Data

This paper uses the cointegrated vector autoregressive (CVAR) model to assess the dynamic relationship between foreign aid inflows, public expenditure, revenue and domestic borrowing in Ethiopia. It departs from the existing literature by using a unique quarterly fiscal dataset (1993-2008) and providing new insights into the formulation of testable fiscal hypotheses. The paper also derives and interprets structural shocks and places a strong focus on model specification. The results suggest the presence of three long-run relationships: the government budget constraint, a donor disbursement rule, and a financing trade-off. Foreign aid grants adjust to the level of development spending, which can be seen as an indication of (procyclical) aid conditionality. Moreover, domestic borrowing often compensates for lower levels of revenue and grants, highlighting the cost of aid unpredictability and revenue volatility. The policy implication is that if foreign aid flows are to be made more effective, they should be provided in a predictable and countercyclical fashion in order to smooth exogenous shocks.Fiscal Response, Foreign Aid, Time Series Models, Africa

Aid Absorption and Spending in Africa: A Panel Cointegration Approach

This paper focuses on the macroeconomic management of large inflows of foreign aid. It investigates the extent to which African countries have coordinated fiscal and macroeconomic responses to aid surges. In practice, we construct a panel dataset to investigate the level of aid ‘absorption’ and ‘spending’. This paper departs from the recent empirical literature by utilising better measures for aid inflows and by employing cointegration analysis. The empirical short-run results suggest that, on average, Africa’s low-income countries have absorbed two-thirds of (grant) aid receipts. This suggests that most of the foreign exchange provided by the aid inflows has been used to finance imports. The other third has been used to build up international reserves, perhaps to protect economies from future external shocks. In the long-run, absorption increases but remains below its maximum (‘full absorption’). Moreover, we also show that aid resources have been fully spent, especially in support of public investment. There is only weak evidence that a share of aid flows have been ‘saved’, i.e. substituted domestic borrowing. Overall, these findings suggest that the macroeconomic management of aid inflows in Africa has been significantly better than often portrayed in comparable exercises. The implication is that African countries will be able to efficiently manage a gradual scaling up in aid resources.Macroeconomic Management, Foreign Aid, Panel Data, Africa

Targeting cancer resistance via multifunctional gold nanoparticles

POCI-01-0145-FEDER-007728 SFRH/BD/120030/2016 PD/BD/105734/2014 Pest-OE/UID/DTP/04138/2013Resistance to chemotherapy is a major problem facing current cancer therapy, which is continuously aiming at the development of new compounds that are capable of tackling tumors that developed resistance toward common chemotherapeutic agents, such as doxorubicin (DOX). Alongside the development of new generations of compounds, nanotechnology-based delivery strategies can significantly improve the in vivo drug stability and target specificity for overcoming drug resistance. In this study, multifunctional gold nanoparticles (AuNP) have been used as a nanoplatform for the targeted delivery of an original anticancer agent, a Zn(II) coordination compound [Zn(DION)2]Cl2 (ZnD), toward better efficacy against DOX-resistant colorectal carcinoma cells (HCT116 DR). Selective delivery of the ZnD nanosystem to cancer cells was achieved by active targeting via cetuximab, NanoZnD, which significantly inhibited cell proliferation and triggered the death of resistant tumor cells, thus improving efficacy. In vivo studies in a colorectal DOX-resistant model corroborated the capability of NanoZnD for the selective targeting of cancer cells, leading to a reduction of tumor growth without systemic toxicity. This approach highlights the potential of gold nanoformulations for the targeting of drug-resistant cancer cells.publishersversionpublishe

In search of lost time constants and of non-Michaelis–Menten parameters

SummaryUpon completing 100 years since it was published, the work Die Kinetik der Invertinwirkung by Michaelis and Menten (MM) was celebrated during the 6th Beilstein ESCEC Symposium 2013. As the 7th Beilstein ESCEC Symposium 2015 debates enzymology in the context of complex biological systems, a post-MM approach is required to address cell-like conditions that are well beyond the steady-state limitations. The present contribution specifically addresses two hitherto ambiguous constants whose interest was, however, intuited in the original MM paper: (i) the characteristic time constant τ∞, which can be determined using the late stages of any progress curve independently of the substrate concentration adopted; and (ii) the dissociation constant KS, which is indicative of the enzyme–substrate affinity and completes the kinetic portrayal of the Briggs–Haldane reaction scheme. The rationale behind τ∞ and KS prompted us to revise widespread concepts of enzyme's efficiency, defined by the specificity constant kcat/KM, and of the Michaelis constant KM seen as the substrate concentration yielding half-maximal rates. The alternative definitions here presented should help recovering the wealth of published kcat/KM and KM data from the criticism that they are subjected. Finally, a practical method is envisaged for objectively determining enzyme's activity, efficiency and affinity – (EA)2 – from single progress curves. The (EA)2 assay can be conveniently applied even when the concentrations of substrate and enzyme are not accurately known

Molecular gas and a new young stellar cluster in the far outer Galaxy

We investigate the star-formation ocurring in the region towards IRAS07527-3446 in the molecular cloud [MAB97]250.63-3.63, in the far outer Galaxy. We report the discovery of a new young stellar cluster, and describe its properties and those of its parent molecular cloud. Near-infrared JHKS images were obtained with VLT/ISAAC, and millimetre line CO spectra were obtained with the SEST telescope. VLA archive date were also used. The cloud and cluster are located at a distance of 10.3 kpc and a Galactocentric distance of 15.4 kpc, in the far outer Galaxy. Morphologically, IRAS 07527-3446 appears as a young embedded cluster of a few hundred stars seen towards the position of the IRAS source, extending for about 2-4 pc and exhibiting sub-clustering. The cluster contains low and intermediate-mass young reddened stars, a large fraction having cleared the inner regions of their circumstellar discs responsible for (H-Ks) colour excess. The observations are compatible with a < 5 Myr cluster with variable spatial extinction of between Av = 5 and Av = 11. Decomposition of CO emission in clumps, reveals a clump clearly associated with the cluster position, of mass 3.3 x 10^3 M(solar). Estimates of the slopes of the Ks-band luminosity function and of the star-formation efficiency yield values similar to those seen in nearby star-formation sites. These findings reinforce previous results that the distant outer Galaxy continues to be active in the production of new and rich stellar clusters, with the physical conditions required for the formation of rich clusters continuing to be met in the very distant environment of the outer Galactic disc.Comment: 11 pages, 13 figure