Publication:
Post-Conflict Aid, Real Exchange Rate Adjustment, and Catch-up Growth

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dc.contributor.authorElbadawi, Ibrahim A.
dc.contributor.authorKaltani, Linda
dc.contributor.authorSchmidt-Hebbel, Klaus
dc.date.accessioned2012-06-04T19:17:04Z
dc.date.available2012-06-04T19:17:04Z
dc.date.issued2007-04
dc.description.abstractPost-conflict countries receive substantial aid flows after the start of peace. While post-conflict countries' capacity to absorb aid (that is, the quality of their policies and institutions) is built up only gradually after the onset of peace, the evidence suggests that aid tends to peak immediately after peace is attained and decline thereafter. Aid composition broadly reflects post-conflict priorities, with large parts of aid financing social expenditure and infrastructure investment. Aid has significant short-term effects on the real exchange rate (RER), as inferred from the behavior of RER in the world. While moderate RER overvaluation is observed in post-conflicts, it cannot be traced down to the aid flows. The empirical evidence on world growth reveals new findings about the pattern of catch-up growth during post-conflicts and the role of key growth determinants on post-conflict growth. Aid is an important determinant of growth, both generally and more strongly during post-conflict periods. Because RER misalignment reduces growth, RER overvaluation during post-conflicts reduces catch-up growth. Aid and RER overvaluation combined also lower growth. But the negative growth effect of RER overvaluation declines with financial development.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/04/7524376/post-conflict-aid-real-exchange-rate-adjustment-catch-up-growth
dc.identifier.doi10.1596/1813-9450-4187
dc.identifier.urihttps://hdl.handle.net/10986/7035
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4187
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGGREGATE OUTPUT
dc.subjectAID FINANCING
dc.subjectAID FLOWS
dc.subjectBENCHMARK
dc.subjectBUDGET CONSTRAINTS
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL INFLOWS
dc.subjectCENTRAL BANK
dc.subjectCIVIL PEACE
dc.subjectCIVIL WAR
dc.subjectCIVIL WARS
dc.subjectCOEFFICIENT ESTIMATE
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVENESS
dc.subjectCONDITIONALITY
dc.subjectCONFLICT COUNTRY
dc.subjectCONFLICTS
dc.subjectCRIME
dc.subjectCRISES
dc.subjectCURRENCY ASSETS
dc.subjectDATA AVAILABILITY
dc.subjectDEBT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT AID
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectDEVELOPMENT GOALS
dc.subjectDEVELOPMENT PROCESS
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectDIMINISHING RETURNS
dc.subjectDISEQUILIBRIUM
dc.subjectDONOR CONDITIONALITY
dc.subjectECONOMIC ACTIVITIES
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC REFORMS
dc.subjectECONOMIC RESEARCH
dc.subjectELASTICITY
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL GROWTH LITERATURE
dc.subjectEMPIRICAL GROWTH MODEL
dc.subjectEMPIRICAL LITERATURE
dc.subjectEMPIRICAL MODEL
dc.subjectESTIMATED ELASTICITY
dc.subjectESTIMATION RESULTS
dc.subjectESTIMATION TECHNIQUES
dc.subjectEXCHANGE RATE MISALIGNMENT
dc.subjectEXCOMBATANTS
dc.subjectEXPLOITATION
dc.subjectEXPORT DIVERSIFICATION
dc.subjectEXPORT GROWTH
dc.subjectEXPORTS
dc.subjectEXTERNALITIES
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFOREIGN AID
dc.subjectFOREIGN EXCHANGE
dc.subjectGDP
dc.subjectGROWTH DETERMINANTS
dc.subjectGROWTH EFFECT
dc.subjectGROWTH IMPACT
dc.subjectGROWTH MODEL
dc.subjectGROWTH PROSPECTS
dc.subjectGROWTH SPECIFICATION
dc.subjectHIGH RISK
dc.subjectHUMANITARIAN AID
dc.subjectIMPORTS
dc.subjectINCOME PER CAPITA
dc.subjectINCREASE GROWTH
dc.subjectINDIVIDUAL COUNTRIES
dc.subjectINFLATION
dc.subjectINFRASTRUCTURE INVESTMENT
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectJOB OPPORTUNITIES
dc.subjectLABOR MARKET
dc.subjectLONG RUN
dc.subjectLONG-RUN GROWTH
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMACROECONOMIC OUTCOMES
dc.subjectMACROECONOMICS
dc.subjectMILLION PEOPLE
dc.subjectNATURAL RESOURCES
dc.subjectNON-TRADITIONAL EXPORTS
dc.subject0 HYPOTHESIS
dc.subjectOPEN ECONOMY
dc.subjectOVERVALUATION
dc.subjectPANEL REGRESSIONS
dc.subjectPEACE PERIOD
dc.subjectPEACE PROCESS
dc.subjectPOLICY IMPLICATIONS
dc.subjectPOLICY ISSUES
dc.subjectPOLICY RESEARCH
dc.subjectPOST-CONFLICT
dc.subjectPOST-CONFLICT COUNTRIES
dc.subjectPOST-CONFLICT COUNTRY
dc.subjectPOST-CONFLICT ECONOMIES
dc.subjectPOST-CONFLICT ECONOMY
dc.subjectPOST-CONFLICT EXPERIENCE
dc.subjectPOST-CONFLICT GOVERNMENTS
dc.subjectPOST-CONFLICT PEACE
dc.subjectPOST-CONFLICT PERIOD
dc.subjectPOVERTY REDUCTION
dc.subjectPRIORITIES
dc.subjectPRO-POOR
dc.subjectREAL EXCHANGE RATE
dc.subjectRECONSTRUCTION
dc.subjectRESOURCE ALLOCATION
dc.subjectSIGNIFICANT CORRELATION
dc.subjectSIGNIFICANT EFFECT
dc.subjectSOCIAL SPENDING
dc.subjectSTANDARD GROWTH DETERMINANTS
dc.subjectSUSTAINABILITY
dc.subjectTRADE DEFICIT
dc.subjectTRADE OPENNESS
dc.subjectTRADE REGIME
dc.subjectTRADED SECTOR
dc.subjectUNDERVALUATION
dc.subjectUNDERVALUED EXCHANGE RATE
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATE
dc.subjectWAGES
dc.titlePost-Conflict Aid, Real Exchange Rate Adjustment, and Catch-up Growthen
dspace.entity.typePublication
okr.crosscuttingsolutionareaFragility, Conflict, and Violence
okr.crossref.titlePost-Conflict Aid, Real Exchange Rate Adjustment, And Catch-Up Growth
okr.date.doiregistration2025-04-10T09:41:18.275699Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/04/7524376/post-conflict-aid-real-exchange-rate-adjustment-catch-up-growth
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticePoverty
okr.guid861541468321856688
okr.identifier.doi10.1596/1813-9450-4187
okr.identifier.externaldocumentum000016406_20070409135857
okr.identifier.internaldocumentum7524376
okr.identifier.reportWPS4187
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/04/09/000016406_20070409135857/Rendered/PDF/wps4187.pdfen
okr.topicPoverty Reduction::Achieving Shared Growth
okr.topicEconomic Theory and Research
okr.topicSocial Development::Social Conflict and Violence
okr.topicSocial Development::Post Conflict Reintegration
okr.topicDevelopment Economics and Aid Effectiveness
okr.topicMacroeconomics and Economic Growth
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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