Download or read book Aid and the Dutch Disease in Low Income Countries written by Mwanza Nkusu and published by International Monetary Fund. This book was released on 2004-03 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper demonstrates that the Dutch disease need not materialize in low-income countries that can draw on their idle productive capacity to satisfy the aid-induced increased demand. Diagnoses on, and prognoses for, the Dutch disease should take into account country-specific circumstances to avoid ill-advised policies. The paper emphasizes that using public resources inefficiently can be more painful than real exchange rate appreciations, which may not necessarily embody the Dutch disease.
Download or read book A Policymakers Guide to Dutch Disease written by Owen Matthew Barder and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is sometimes claimed that an increase in aid might cause Dutch Disease - that is, an appreciation of the real exchange rate which can slow the growth of a country's exports - and that aid increases might thereby harm a country's long-term growth prospects. This essay argues that it is unlikely that a long-term, sustained and predictable increase in aid would, through the impact on the real exchange rate, do more harm than good, for three reasons. First, there is not necessarily an adverse impact on exports from Dutch Disease, and any impact on economic growth may be small. Second, aid spent in part on improving the supply side - investments in infrastructure, education, government institutions and health - result in productivity benefits for the whole economy, which can offset any loss of competitiveness from the Dutch Disease effect. Third, the welfare of a nation's citizens depends on their consumption and investment, not just output. Even on pessimistic assumptions, the additional consumption and investment which the aid finances is larger than any likely adverse impact on output. However, the macroeconomic effects of aid can cause substantial harm if the aid is not sustained until its benefits are realized. The costs of a temporary loss of competitiveness might well exceed the benefits of the short-term increase in aid. To avoid doing harm, aid should be sustained and predictable, and used in part to promote economic growth. This maximizes the chances that the long-term productivity and growth benefits will offset the adverse effects - which may be small if they exist at all - that big aid surges may pose as a result of Dutch Disease.
Download or read book Aid Exports and Growth written by Mr.Joong Kang and published by International Monetary Fund. This book was released on 2013-03-20 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: We use a heterogeneous panel VAR model identified through factor analysis to study the dynamic response of exports, imports, and per capita GDP growth to a “global” aid shock. We find that a global aid shock can affect exports, imports, and growth either positively or negatively. As a result, the relation between aid and growth is mixed, consistent with the ambiguous results in the existing literature. For most countries in the sample, when aid reduces exports and imports, it also reduces growth; and, when aid increases exports and imports, it also increases growth. This evidence is consistent with a DD hypothesis, but also shows that aid-receiving countries are not “doomed” to catch DD.
Download or read book Aid and the Dutch Disease written by Stephen D. Younger and published by Cornell Food & Nutrition Policy Programs. This book was released on 1991 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Aid and the Fiscal and Monetary Responses to Dutch Disease written by Alan Roe and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study assesses the fiscal and monetary management challenges that can be associated with large inflows of foreign aid. It provides a brief overview of the literature on Dutch Disease (DD) as applied to mineral wealth and then assesses the conventional policy responses that are available to mitigate the main problems that can be caused by DD. This discussion incorporates an identification of the additional issues and transmission mechanisms that arise when the source of DD is a surge in foreign aid. This analysis is designed to illuminate the circumstances in which an aid-induced DD effect is likely to call for countervailing macroeconomic policy interventions, and when other approaches may be more appropriate. The study concludes with an empirical assessment of the relative importance of mineral-based and aid-based DD problems in low- and middle-income economies. It suggests - contrary to the mainstream literature - that foreign aid and mineral exports typically create joint macroeconomic management problems for such countries. -- Aid ; Dutch disease ; monetary policy ; fiscal policy
Download or read book Foreign Aid and Dutch Disease written by Hans Falck and published by . This book was released on 1992 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Model of Aid and Dutch Disease in Sub Saharan Africa written by David Fielding and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Foreign Aid and Dutch Disease written by and published by . This book was released on 2014 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dead Aid written by Dambisa Moyo and published by Macmillan. This book was released on 2009-03-17 with total page 209 pages. Available in PDF, EPUB and Kindle. Book excerpt: Debunking the current model of international aid promoted by both Hollywood celebrities and policy makers, Moyo offers a bold new road map for financing development of the world's poorest countries.
Download or read book Aid Flows and Dutch Disease in a General Equilibrium Framework for Pakist an written by Rob Vos and published by . This book was released on 1994 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Does the Flow of Foreign Aid Cause Dutch Disease What Does the Evidence Show in Ethiopia written by Nahom Girma Fikresilassie and published by . This book was released on 2011 with total page 71 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Aid Growth and Poverty written by Jonathan Glennie and published by Springer. This book was released on 2016-05-30 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors discuss the impact of foreign aid and tackle the question of why assessing the impact of aid is so difficult. The authors focus on peer-reviewed, cross-country studies published over the last decade and draw together some global-level assessments, considering the context and conditions under which aid might be said to ‘work’. Glennie and Sumner argue that the evidence in four areas shows signs of convergence that may have direct relevance for policy decisions on aid and for aid effectiveness discussions. These are as follows: Aid levels (meaning if aid is too low or too high); Domestic political institutions (including political stability and extent of decentralisation); Aid composition (including sectors, modalities, objectives and time horizons); and Aid volatility and fragmentation. Notably, this study finds that there is no consensus that the effectiveness of aid depends on orthodox economic policies.
Download or read book Aid Volatility and Dutch Disease written by Thierry Tressel and published by International Monetary Fund. This book was released on 2006-06 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 effects can be mitigated through changes in net domestic assets of the central bank-a variable that reflects both monetary and fiscal policy. To characterize the optimal policy, we develop a general equilibrium model in which the capital account is closed and aid influences productivity growth through positive (public expenditure) and negative (Dutch disease) externalities. In this setting, macroeconomic policies permanently affect real variables and can improve welfare if donors do not distribute foreign aid optimally over time.
Download or read book Does Development Aid Suffer from Dutch Disease written by and published by . This book was released on 2017 with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Bottom Billion written by Paul Collier and published by Oxford University Press, USA. This book was released on 2008-10-02 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Bottom Billion is an elegant and impassioned synthesis from one of the world's leading experts on Africa and poverty. It was hailed as "the best non-fiction book so far this year" by Nicholas Kristoff of The New York Times.
Download or read book Dutch Disease in Aid recipient Countries written by Karel Verbeke and published by . This book was released on 2007 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Aid Exports and Growth written by Joong Shik Kang and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The available evidence on the effects of aid on growth is notoriously mixed. This paper uses a novel empirical methodology, a heterogeneous panel vector-autoregression model identified through factor analysis, to study the dynamic response of exports, imports, and per capita GDP growth to a "global" aid shock (the common component of individual country aid-to-GDP ratios). It is found that the estimated cumulative responses of exports and per capita GDP growth to a global aid shock are strongly positively correlated, and both responses are inversely related to exchange rate overvaluation measures. This evidence is interpreted as consistent with the Dutch disease hypothesis. However, it is also found that, in countries with less overvalued real exchange rates, exports and per capita GDP growth respond positively to a global aid shock. This evidence suggests that preventing exchange rate overvaluations may allow aid-receiving countries to avoid Dutch disease.
