Publication:
Foreign Aid, the Real Exchange Rate, and Economic Growth in the Aftermath of Civil Wars

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creativeworkseries.issn1564-698X
dc.contributor.authorElbadawi, Ibrahim Ahmed
dc.contributor.authorKaltani, Linda
dc.contributor.authorSchmidt-Hebbel, Klaus
dc.date.accessioned2012-03-30T07:12:36Z
dc.date.available2012-03-30T07:12:36Z
dc.date.issued2008-01-30
dc.description.abstractForeign aid, the real exchange rate (RER), and economic growth are three key variables that shape the aftermath of civil wars in many developing countries. Panel estimations drawn from a sample of 39 conflict and 44 nonconflict countries between 1970 and 2004 indicate that although postconflict countries receive larger aid flows and exhibit moderate RER overvaluation after peace is attained, overvaluation cannot be traced to aid. Yet foreign aid is among the significant determinants of the equilibrium RER. Aid is also an important determinant of economic growth, particularly after peace is reached. Aid exhibits decreasing returns, however, and interacts negatively with RER overvaluation. RER overvaluation reduces growth, but this effect is ameliorated by financial development. Postconflict policies should therefore aim to use aid prudently, avoid RER misalignment, and support financial and capital market development to achieve high and stable growth in the aftermath of war and beyond.en
dc.identifier.citationWorld Bank Economic Review
dc.identifier.doi10.1596/4474
dc.identifier.issn1564-698X
dc.identifier.urihttps://hdl.handle.net/10986/4474
dc.publisherWorld Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectadverse effect
dc.subjectcompetitiveness
dc.subjectcurrency assets
dc.subjectDevelopment Economics
dc.subjectEconomic Growth
dc.subjectEconomic Research
dc.subjectEconomics Research
dc.subjectequilibrium
dc.subjectexport growth
dc.subjectovervaluation
dc.titleForeign Aid, the Real Exchange Rate, and Economic Growth in the Aftermath of Civil Warsen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.date.doiregistration2025-05-06T10:55:59.166126Z
okr.doctypeJournal Article
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticePoverty
okr.globalpracticeFinance and Markets
okr.identifier.report1
okr.language.supporteden
okr.pagenumber113
okr.pagenumber140
okr.pdfurlwber_22_1_113.pdfen
okr.peerreviewAcademic Peer Review
okr.region.countryNetherlands Antilles
okr.region.countryChile
okr.region.countryCongo, Republic of
okr.region.geographicalAfrica
okr.topicEconomic Theory and Research
okr.topicPoverty Reduction::Pro-Poor Growth
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicMacroeconomics and Economic Growth::Economic Conditions and Volatility
okr.topicFinance and Financial Sector Development::Debt Markets
okr.volume22
relation.isJournalIssueOfPublication50bd9daf-dc4e-471a-8ac1-876be05c4985
relation.isJournalIssueOfPublication.latestForDiscovery50bd9daf-dc4e-471a-8ac1-876be05c4985
relation.isJournalOfPublicationc41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication4c8baec9-4fd4-4228-8add-184b554e4a53
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