Publication:
Aid, Growth, and Real Exchange Rate Dynamics

Simple item page
dc.contributor.author Devarajan, Shantayanan
dc.contributor.author Go, Delfin S.
dc.contributor.author Page, John
dc.contributor.author Robinson, Sherman
dc.contributor.author Thierfelder, Karen
dc.date.accessioned 2012-05-25T21:30:48Z
dc.date.available 2012-05-25T21:30:48Z
dc.date.issued 2008-01
dc.description.abstract Devarajan, Go, Page, Robinson, and Thierfelder argued that if aid is about the future and recipients are able to plan consumption and investment decisions optimally over time, then the potential problem of an aid-induced appreciation of the real exchange rate (Dutch disease) does not occur. In their paper, "Aid, Growth and Real Exchange Rate Dynamics," this key result is derived without requiring extreme assumptions or additional productivity story. The economic framework is a standard neoclassical growth model, based on the familiar Salter-Swan characterization of an open economy, with full dynamic savings and investment decisions. It does require that the model is fully dynamic in both savings and investment decisions. An important assumption is that aid should be predictable for intertemporal smoothing to take place. If aid volatility forces recipients to be constrained and myopic, Dutch disease problems become an issue. en
dc.identifier http://documents.worldbank.org/curated/en/2008/01/8947106/aid-growth-real-exchange-rate-dynamics
dc.identifier.uri http://hdl.handle.net/10986/6482
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 4480
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ABSORPTIVE CAPACITY
dc.subject ADJUSTMENT COST
dc.subject ADJUSTMENT COST FUNCTION
dc.subject ADJUSTMENT COSTS
dc.subject AGGREGATE CONSUMPTION
dc.subject AGGREGATE DEMAND
dc.subject AGGREGATE SUPPLY
dc.subject BALANCE OF PAYMENTS
dc.subject BALANCE OF TRADE
dc.subject BASE YEAR
dc.subject BEHAVIOR OF INVESTMENT
dc.subject BID
dc.subject BUDGET CONSTRAINT
dc.subject CAPITAL ACCUMULATION
dc.subject CAPITAL FORMATION
dc.subject CAPITAL GOODS
dc.subject CAPITAL GOODS IMPORT
dc.subject CAPITAL INFLOW
dc.subject CAPITAL INFLOWS
dc.subject CAPITAL STOCK
dc.subject COMMERCIAL LOAN
dc.subject COMMERCIAL LOANS
dc.subject COMMODITY PRICES
dc.subject COMPETITIVENESS
dc.subject CONSUMER PREFERENCES
dc.subject CONSUMERS
dc.subject CONSUMPTION DECLINES
dc.subject CONSUMPTION EXPENDITURES
dc.subject CONSUMPTION SMOOTHING
dc.subject CORPORATE INVESTMENT
dc.subject COST OF INVESTMENT
dc.subject CURRENCY
dc.subject CURRENT ACCOUNT
dc.subject CURRENT ACCOUNT BALANCE
dc.subject DEBT
dc.subject DEBT ACCUMULATION
dc.subject DEBT CRISIS
dc.subject DEBT MARKET
dc.subject DEBT RATIO
dc.subject DEBT REDUCTION
dc.subject DEBT RELIEF
dc.subject DEBT REPAYMENTS
dc.subject DEBT SERVICE
dc.subject DEBT STOCK
dc.subject DEBT SUSTAINABILITY
dc.subject DEFAULT RISK
dc.subject DEPRECIATION
dc.subject DEPRECIATION RATE
dc.subject DEPRESSION
dc.subject DEVELOPING COUNTRIES
dc.subject DEVELOPING COUNTRY
dc.subject DEVELOPMENT ECONOMICS
dc.subject DIRECTION OF TRADE
dc.subject DISBURSEMENTS
dc.subject DISCOUNT RATE
dc.subject DISCOUNT RATES
dc.subject DOMESTIC GOOD
dc.subject DOMESTIC GOODS
dc.subject DOMESTIC INTEREST RATE
dc.subject DOMESTIC PRICE
dc.subject DOMESTIC PRICES
dc.subject DUTCH DISEASE
dc.subject DYNAMIC ANALYSES
dc.subject DYNAMIC CONSISTENCY
dc.subject ECONOMETRIC ESTIMATES
dc.subject ECONOMIC DEVELOPMENT
dc.subject ECONOMIC GROWTH
dc.subject ECONOMIC OUTCOMES
dc.subject ECONOMIC POLICIES
dc.subject ECONOMIC RESEARCH
dc.subject ECONOMIC THEORY
dc.subject ELASTICITY
dc.subject ELASTICITY OF SUBSTITUTION
dc.subject EQUATIONS
dc.subject EQUILIBRIUM
dc.subject EXCHANGE RATE DYNAMICS
dc.subject EXOGENOUS SHOCKS
dc.subject EXPENDITURE
dc.subject EXPENDITURES
dc.subject EXPORT COMPETITIVENESS
dc.subject EXPORT PERFORMANCE
dc.subject EXPORT SHARE
dc.subject EXPORT SHARES
dc.subject EXPORTS
dc.subject EXTERNAL BORROWING
dc.subject EXTERNAL BORROWINGS
dc.subject EXTERNAL DEBT
dc.subject EXTERNAL FINANCING
dc.subject EXTERNAL SHOCK
dc.subject EXTERNAL SHOCKS
dc.subject EXTERNALITIES
dc.subject EXTREME POVERTY
dc.subject FISCAL POLICY
dc.subject FIXED EXCHANGE RATE
dc.subject FOREIGN CAPITAL
dc.subject FOREIGN DEBT
dc.subject FOREIGN INDEBTEDNESS
dc.subject FOREIGN INFLOWS
dc.subject FOREIGN INVESTMENTS
dc.subject FREE TRADE
dc.subject GDP
dc.subject GENERAL EQUILIBRIUM
dc.subject GENERAL EQUILIBRIUM MODEL
dc.subject GLOBAL ECONOMY
dc.subject GLOBALIZATION
dc.subject GOVERNMENT BUDGET
dc.subject GOVERNMENT REVENUE
dc.subject GOVERNMENT SAVINGS
dc.subject GROSS DOMESTIC PRODUCT
dc.subject GROWTH RATE
dc.subject GROWTH RATES
dc.subject HUMAN CAPITAL
dc.subject IMPORT
dc.subject IMPORT DEMAND
dc.subject IMPORT PRICE
dc.subject IMPORT PRICES
dc.subject IMPORT TARIFFS
dc.subject IMPORTS
dc.subject INCENTIVE EFFECTS
dc.subject INCOME
dc.subject INCOME LEVELS
dc.subject INCOME TAX
dc.subject INDUSTRIALIZATION
dc.subject INTEREST PARITY
dc.subject INTEREST RATE
dc.subject INTEREST RATES
dc.subject INTERNATIONAL BANK
dc.subject INTERNATIONAL DEVELOPMENT
dc.subject INTERNATIONAL FINANCE
dc.subject INTERNATIONAL LENDING
dc.subject INTERNATIONAL RESERVES
dc.subject INTERNATIONAL TRADE
dc.subject INVESTING
dc.subject INVESTMENT CAPITAL
dc.subject INVESTMENT DECISIONS
dc.subject INVESTMENT EXPENDITURE
dc.subject INVESTMENT EXPENDITURES
dc.subject INVESTMENT RATIO
dc.subject INVESTMENT RISES
dc.subject LABOR MARKET
dc.subject LOW-INCOME COUNTRIES
dc.subject LOW-INCOME COUNTRY
dc.subject MACROECONOMIC INSTABILITY
dc.subject MACROECONOMIC MANAGEMENT
dc.subject MACROECONOMIC STABILITY
dc.subject MACROECONOMICS
dc.subject MARGINAL COST
dc.subject MARGINAL PRODUCTIVITY
dc.subject MARKET DISCOUNT
dc.subject MARKET EQUILIBRIUM
dc.subject MONETARY FUND
dc.subject NOMINAL EXCHANGE RATE
dc.subject OIL RESERVES
dc.subject OPEN ECONOMY
dc.subject OPTIMAL INVESTMENT
dc.subject OPTIMIZATION
dc.subject OVERVALUATION
dc.subject POLICY RESPONSE
dc.subject POLICY RESPONSES
dc.subject PRICE CHANGE
dc.subject PRICE HIKE
dc.subject PRICE OF EXPORTS
dc.subject PRICE OF INVESTMENT GOODS
dc.subject PRIVATE CAPITAL
dc.subject PRODUCTION FUNCTION
dc.subject PRODUCTIVITY
dc.subject PRODUCTIVITY GROWTH
dc.subject PUBLIC EXPENDITURES
dc.subject PUBLIC EXTERNAL DEBT
dc.subject PUBLIC INVESTMENT
dc.subject PURCHASE PRICE
dc.subject PURCHASING POWER
dc.subject RATE OF RETURN
dc.subject REAL APPRECIATION
dc.subject REAL DEPRECIATION
dc.subject REAL EXCHANGE APPRECIATION
dc.subject REAL EXCHANGE RATE
dc.subject REAL EXCHANGE RATE ^ ^ ^ CHANGE
dc.subject REAL EXCHANGE RATE APPRECIATION
dc.subject REAL EXCHANGE RATES
dc.subject RELATIVE PRICE
dc.subject RELATIVE PRICES
dc.subject REMITTANCES
dc.subject REPAYMENT
dc.subject REPUDIATION
dc.subject RESERVES
dc.subject RETURN
dc.subject RETURNS
dc.subject RISK PREMIUM
dc.subject SAVINGS
dc.subject SIDE EFFECTS
dc.subject SOVEREIGN RISK
dc.subject STEADY STATE
dc.subject STOCK MARKET
dc.subject STRONG COMMODITY
dc.subject SUPPLY CURVE
dc.subject SUPPLY RESPONSE
dc.subject SUPPLY SIDE
dc.subject TAX
dc.subject TAX CREDITS
dc.subject TAX RATE
dc.subject TAXATION
dc.subject TIME HORIZON
dc.subject TOTAL FACTOR PRODUCTIVITY
dc.subject TOTAL INVESTMENT
dc.subject TRADE BALANCE
dc.subject TRADE LIBERALIZATION
dc.subject TRADE OPENNESS
dc.subject TRADE POLICY
dc.subject TRADE SHARE
dc.subject TRADE SHARES
dc.subject TRADE SHOCK
dc.subject UNCERTAINTY
dc.subject VALUE ADDED
dc.subject WORLD ECONOMY
dc.subject WORLD INTEREST RATE
dc.subject WORLD MARKETS
dc.subject WORLD PRICE
dc.title Aid, Growth, and Real Exchange Rate Dynamics en
dspace.entity.type Publication
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2008/01/8947106/aid-growth-real-exchange-rate-dynamics
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Finance and Markets
okr.globalpractice Trade and Competitiveness
okr.identifier.doi 10.1596/1813-9450-4480
okr.identifier.externaldocumentum 000158349_20080116150507
okr.identifier.internaldocumentum 8947106
okr.identifier.report WPS4480
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/01/16/000158349_20080116150507/Rendered/PDF/wps4480.pdf en
okr.topic Finance and Financial Sector Development :: Currencies and Exchange Rates
okr.topic Economic Theory and Research
okr.topic Private Sector Development :: Emerging Markets
okr.topic Finance and Financial Sector Development :: Debt Markets
okr.topic Macroeconomics and Economic Growth
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isAuthorOfPublication ddcdf87a-9a86-50e0-b365-0d2c747a0607
relation.isAuthorOfPublication 165325f4-d27a-5241-80a4-eb5495c41c24
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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