Publication:
Aid, Shocks, and Growth
dc.contributor.author | Collier, Paul | |
dc.contributor.author | Dehn, Jan | |
dc.date.accessioned | 2014-08-20T19:18:12Z | |
dc.date.available | 2014-08-20T19:18:12Z | |
dc.date.issued | 2001-10 | |
dc.description.abstract | Analysis of the relationship between aid and growth by Burnside and Dollar found that the better a country's policies, the more effective aid is in raising growth in that country. But this result has been criticized for being sensitive to choice of sample and for neglecting shocks. The authors incorporate export price shocks into the analysis of aid's effect on growth. They construct export price indices using the approach pioneered by Deaton and Miller. They locate shocks by differencing the indices, removing predictable elements from the stationary process, and normalizing the residuals. Extreme negative shocks are the bottom 2.5 percent tail of this distribution. Introducing these extreme shocks into the Burnside-Dollar regression, the authors find that they are highly significant: unsurprisingly, extreme negative shocks reduce growth. Once these shocks are included, the Burnside-Dollar results become robust to choice of sample. Moreover, the adverse effects of negative shocks on growth can be mitigated through offsetting increases in aid. Indeed, targeting aid to countries experiencing negative shocks appears to be even more important for aid effectiveness than targeting aid to countries with good policies. But the authors show that, overall, donors have not used aid for this purpose. | en |
dc.identifier | http://documents.worldbank.org/curated/en/2001/10/1614893/aid-shocks-growth | |
dc.identifier.uri | http://hdl.handle.net/10986/19508 | |
dc.language | English | |
dc.language.iso | en_US | |
dc.publisher | World Bank, Washington, DC | |
dc.relation.ispartofseries | Policy Research Working Paper;No. 2688 | |
dc.rights | CC BY 3.0 IGO | |
dc.rights.uri | http://creativecommons.org/licenses/by/3.0/igo/ | |
dc.subject | ADVERSE EFFECTS | |
dc.subject | AID | |
dc.subject | AID ALLOCATION | |
dc.subject | AVERAGE CHANGE | |
dc.subject | COMMODITY PRICES | |
dc.subject | DATA SET | |
dc.subject | DEPENDENT VARIABLE | |
dc.subject | DEVELOPING COUNTRIES | |
dc.subject | DEVELOPMENT ASSISTANCE | |
dc.subject | DEVELOPMENT ECONOMICS | |
dc.subject | DEVELOPMENT ISSUES | |
dc.subject | DEVELOPMENT RESEARCH | |
dc.subject | ECONOMETRIC ANALYSIS | |
dc.subject | ECONOMIC ACTIVITY | |
dc.subject | ECONOMIC GROWTH | |
dc.subject | ECONOMIC MODELS | |
dc.subject | ECONOMIC REVIEW | |
dc.subject | ECONOMIC STUDIES | |
dc.subject | EXPLANATORY VARIABLES | |
dc.subject | EXPORTS | |
dc.subject | FOREIGN AID | |
dc.subject | FOREIGN EXCHANGE | |
dc.subject | GROWTH EFFECT | |
dc.subject | GROWTH EPISODES | |
dc.subject | GROWTH PROCESS | |
dc.subject | GROWTH RATE | |
dc.subject | GROWTH REGRESSIONS | |
dc.subject | INCOME | |
dc.subject | INCOME MEAN | |
dc.subject | INCREASING GROWTH | |
dc.subject | INTERNATIONAL TRADE | |
dc.subject | MACROECONOMIC POLICY | |
dc.subject | MACROECONOMICS | |
dc.subject | NATIONAL INCOME | |
dc.subject | NEGATIVE SHOCK | |
dc.subject | NEGATIVE SHOCKS | |
dc.subject | NEGATIVE TERMS | |
dc.subject | OIL | |
dc.subject | POLICY RESEARCH | |
dc.subject | POSITIVE SHOCKS | |
dc.subject | POVERTY REDUCTION | |
dc.subject | PRICE CHANGES | |
dc.subject | PRICE INDEX | |
dc.subject | PRICE INDICES | |
dc.subject | PRIVATE SECTOR | |
dc.subject | PRODUCERS | |
dc.subject | RECESSION | |
dc.subject | REDUCING POVERTY | |
dc.subject | SIGNIFICANT EFFECT | |
dc.subject | TARGETING | |
dc.subject | TAXATION | |
dc.subject | TERMS OF TRADE | |
dc.subject | UNEMPLOYMENT | |
dc.subject | PRICE STABILIZATION | |
dc.subject | TARGETED ASSISTANCE | |
dc.subject | ECONOMIC SHOCKS | |
dc.subject | AID FLOWS | |
dc.title | Aid, Shocks, and Growth | en |
dspace.entity.type | Publication | |
okr.crosscuttingsolutionarea | Gender | |
okr.date.disclosure | 2001-10-31 | |
okr.doctype | Publications & Research :: Policy Research Working Paper | |
okr.doctype | Publications & Research | |
okr.docurl | http://documents.worldbank.org/curated/en/2001/10/1614893/aid-shocks-growth | |
okr.globalpractice | Macroeconomics and Fiscal Management | |
okr.globalpractice | Education | |
okr.globalpractice | Health, Nutrition, and Population | |
okr.globalpractice | Poverty | |
okr.globalpractice | Finance and Markets | |
okr.identifier.doi | 10.1596/1813-9450-2688 | |
okr.identifier.externaldocumentum | 000094946_01102304052049 | |
okr.identifier.internaldocumentum | 1614893 | |
okr.identifier.report | WPS2688 | |
okr.language.supported | en | |
okr.pdfurl | http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/11/06/000094946_01102304052049/Rendered/PDF/multi0page.pdf | en |
okr.topic | Environmental Economics and Policies | |
okr.topic | Education :: School Health | |
okr.topic | Macroeconomics and Economic Growth :: Markets and Market Access | |
okr.topic | Development Economics and Aid Effectiveness | |
okr.topic | Poverty Reduction :: Inequality | |
okr.topic | Gender :: Gender and Development | |
okr.unit | Office of the Director, Development Research Group | |
okr.volume | 1 | |
relation.isSeriesOfPublication | 26e071dc-b0bf-409c-b982-df2970295c87 |
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