Aid allocation effects on growth and poverty: A CGE framework
AbstractIt has been argues that increased aid causes Dutch disease as a result of appreciation of the exchange rate which reduces the competitiveness of the country's exports. In this paper, we argue that if the aid is used productively, there are both short and long term gains. Applying a recursive dynamic general equilibrium model on Uganda, we find that while the currency appreciates and some exports decline, the overall impact on growth outweighs the losses in competitiveness. In addition, it aid is used productively, poverty would be substantially reduced as long as the aid increase is sustained.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Economic Policy Research Centre (EPRC) in its series Research Series with number 54937.
Date of creation: May 2009
Date of revision:
Contact details of provider:
Postal: 51 Pool Road, Makerere University Campus, P.O.Box 7841 Kampala
Web page: http://www.eprc.or.ug
More information through EDIRC
Aid; Exchange rate; Dutch disease; Twimukye; Nabiddo; Matovu; Exports; Foreign aid; Poverty reduction; Economic policy research center; Community/Rural/Urban Development; Consumer/Household Economics; Demand and Price Analysis; Financial Economics; International Development; Labor and Human Capital; Production Economics; Productivity Analysis; Public Economics;
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Buyinza, Faisal, 2011. "Performance and Survival of Ugandan Manufacturing firms in the context of the East African Community," Research Series 150477, Economic Policy Research Centre (EPRC).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.