Publication

This paper examines the effects of providing aid-financed fiscal stimulus in sub- Saharan Africa using a calibrated macroeconomic model of the world economy. It provides a brief review of the relevant literature, discusses the policy scenarios involved, and explains the results of the model simulations. The authors conclude that developed countries can support fiscal stimulus in developing countries through increased aid and that productive investment in infrastructure can lead to sustained increases in growth in sub-Saharan Africa.