Erden, LütfiGüven, Aytekin2021-06-232021-06-2320090013-3035https://hdl.handle.net/20.500.12491/6557https://www.sav.sk/journals/uploads/0920145005%2009%20Erden%20R-S.pdfThis study contributes to the aid-effectiveness literature by applying a fiscal response model to a panel of 24 transition nations over the periods 1990 - 2005. The study employs various dynamic panel estimation methods in an effort to analyze the impact of foreign aid on governments' fiscal behaviour; that is, government investment, government consumption, public revenue creation and borrowing activities. The findings shed some light on the aid-growth nexus, indicating that aid promotes government investment while does not influence government consumption behaviour. Further, there appears to be a positive association between aid and public borrowing, which can be detrimental to the growth process in transition economies.eninfo:eu-repo/semantics/closedAccessForeign AidFiscal ResponseTransition EconomiesDynamic PanelArticle5754454572-s2.0-70349303460Q4WOS:000269724500003Q4