Aid Volatility and Dutch Disease : Is There a Role for Macroeconomic Policies?

Is There a Role for Macroeconomic Policies?

Aid Volatility and Dutch Disease : Is There a Role for Macroeconomic Policies?
This paper studies how macroeconomic policies can help offset two unintended and undesirable features of foreign aid: its volatility and Dutch disease. We present evidence that aid volatility augments trade balance volatility and that foreign aid, with the important exception of years of adverse shocks, depresses exports. We also find that these... READ MORE...

Publication date: June 2006
ISBN 9781451864052
$15.00

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