Aid, Dutch Disease, and Manufacturing Growth
AbstractWe examine the effects of aid on the growth of manufacturing, using a methodology that exploits the variation within countries and across manufacturing sectors, and corrects for possible reverse causality. We find that aid inflows have systematic adverse effects on a country’s competitiveness, as reflected in the lower relative growth rate of exportable industries. We provide some evidence suggesting that the channel for these effects is the real exchange rate appreciation caused by aid inflows. We conjecture that this may explain, in part, why it is hard to find robust evidence that foreign aid helps countries grow.
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Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 196.
Length: 39 pages
Date of creation: Dec 2009
Date of revision:
Contact details of provider:
Web page: http://www.cgdev.org
manufacturing; economic development; dutch disease; cgd; center for global development;
Other versions of this item:
- NEP-ALL-2010-02-05 (All new papers)
- NEP-DEV-2010-02-05 (Development)
- NEP-FDG-2010-02-05 (Financial Development & Growth)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- EfficacitÃ© de lâAide publique au dÃ©veloppement
by email@example.com (Marin Ferry) in BS Initiative on 2013-11-26 09:36:52
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