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Aid and Income Stabilization

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  • S. Guillaumont Jeanneney
  • S. J‐A. Tapsoba

Abstract

This article contributes to the debate on aid volatility and argues that official assistance copes with exogenous output shocks in recipient countries and stabilizes resources available for the financing of consumption, investment and net trade. Stabilizing aid is effective in aid-dependent and vulnerable states. Aid volatility and disbursement lags are not significant determinants of the stabilizing impact of aid.

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File URL: http://hdl.handle.net/10.1111/j.1467-9361.2012.00657.x
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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 16 (2012)
Issue (Month): 2 (05)
Pages: 216-229

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Handle: RePEc:bla:rdevec:v:16:y:2012:i:2:p:216-229

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

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  1. Jose Maria Da Rocha & Diego Restuccia, 2006. "The Role of Agriculture in Aggregate Business Cycles," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(3), pages 455-482, July.
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Cited by:
  1. Guillaumont, Patrick & Wagner, Laurent, 2012. "Aid and Growth Accelerations: Vulnerability Matters," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Andrea Filippo Presbitero, 2013. "Aid and Vulnerability," Mo.Fi.R. Working Papers 88, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  3. Patrick GUILLAUMONT & Laurent WAGNER, 2014. "Aid effectiveness for poverty reduction: lessons from cross-country analyses, with a special focus on vulnerable countries," Working Papers P96, FERDI.
  4. Faruk Balli & Faisal Rana, 2014. "Determinants of risk sharing through remittances: cross-country evidence," CAMA Working Papers 2014-12, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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