Publication:
Aid, Growth, and Real Exchange Rate Dynamics

Simple item page
dc.contributor.authorPage, John
dc.contributor.authorDevarajan, Shantayanan
dc.contributor.authorRobinson, Sherman
dc.contributor.authorGo, Delfin S.
dc.contributor.authorThierfelder, Karen
dc.date.accessioned2012-05-25T21:30:48Z
dc.date.available2012-05-25T21:30:48Z
dc.date.issued2008-01
dc.description.abstractDevarajan, 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.identifierhttp://documents.worldbank.org/curated/en/2008/01/8947106/aid-growth-real-exchange-rate-dynamics
dc.identifier.doi10.1596/1813-9450-4480
dc.identifier.urihttps://hdl.handle.net/10986/6482
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4480
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABSORPTIVE CAPACITY
dc.subjectADJUSTMENT COST
dc.subjectADJUSTMENT COST FUNCTION
dc.subjectADJUSTMENT COSTS
dc.subjectAGGREGATE CONSUMPTION
dc.subjectAGGREGATE DEMAND
dc.subjectAGGREGATE SUPPLY
dc.subjectBALANCE OF PAYMENTS
dc.subjectBALANCE OF TRADE
dc.subjectBASE YEAR
dc.subjectBEHAVIOR OF INVESTMENT
dc.subjectBID
dc.subjectBUDGET CONSTRAINT
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL GOODS
dc.subjectCAPITAL GOODS IMPORT
dc.subjectCAPITAL INFLOW
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL STOCK
dc.subjectCOMMERCIAL LOAN
dc.subjectCOMMERCIAL LOANS
dc.subjectCOMMODITY PRICES
dc.subjectCOMPETITIVENESS
dc.subjectCONSUMER PREFERENCES
dc.subjectCONSUMERS
dc.subjectCONSUMPTION DECLINES
dc.subjectCONSUMPTION EXPENDITURES
dc.subjectCONSUMPTION SMOOTHING
dc.subjectCORPORATE INVESTMENT
dc.subjectCOST OF INVESTMENT
dc.subjectCURRENCY
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT BALANCE
dc.subjectDEBT
dc.subjectDEBT ACCUMULATION
dc.subjectDEBT CRISIS
dc.subjectDEBT MARKET
dc.subjectDEBT RATIO
dc.subjectDEBT REDUCTION
dc.subjectDEBT RELIEF
dc.subjectDEBT REPAYMENTS
dc.subjectDEBT SERVICE
dc.subjectDEBT STOCK
dc.subjectDEBT SUSTAINABILITY
dc.subjectDEFAULT RISK
dc.subjectDEPRECIATION
dc.subjectDEPRECIATION RATE
dc.subjectDEPRESSION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDIRECTION OF TRADE
dc.subjectDISBURSEMENTS
dc.subjectDISCOUNT RATE
dc.subjectDISCOUNT RATES
dc.subjectDOMESTIC GOOD
dc.subjectDOMESTIC GOODS
dc.subjectDOMESTIC INTEREST RATE
dc.subjectDOMESTIC PRICE
dc.subjectDOMESTIC PRICES
dc.subjectDUTCH DISEASE
dc.subjectDYNAMIC ANALYSES
dc.subjectDYNAMIC CONSISTENCY
dc.subjectECONOMETRIC ESTIMATES
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC OUTCOMES
dc.subjectECONOMIC POLICIES
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC THEORY
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectEQUATIONS
dc.subjectEQUILIBRIUM
dc.subjectEXCHANGE RATE DYNAMICS
dc.subjectEXOGENOUS SHOCKS
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPORT COMPETITIVENESS
dc.subjectEXPORT PERFORMANCE
dc.subjectEXPORT SHARE
dc.subjectEXPORT SHARES
dc.subjectEXPORTS
dc.subjectEXTERNAL BORROWING
dc.subjectEXTERNAL BORROWINGS
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL FINANCING
dc.subjectEXTERNAL SHOCK
dc.subjectEXTERNAL SHOCKS
dc.subjectEXTERNALITIES
dc.subjectEXTREME POVERTY
dc.subjectFISCAL POLICY
dc.subjectFIXED EXCHANGE RATE
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN DEBT
dc.subjectFOREIGN INDEBTEDNESS
dc.subjectFOREIGN INFLOWS
dc.subjectFOREIGN INVESTMENTS
dc.subjectFREE TRADE
dc.subjectGDP
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectGLOBAL ECONOMY
dc.subjectGLOBALIZATION
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT REVENUE
dc.subjectGOVERNMENT SAVINGS
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHUMAN CAPITAL
dc.subjectIMPORT
dc.subjectIMPORT DEMAND
dc.subjectIMPORT PRICE
dc.subjectIMPORT PRICES
dc.subjectIMPORT TARIFFS
dc.subjectIMPORTS
dc.subjectINCENTIVE EFFECTS
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINCOME TAX
dc.subjectINDUSTRIALIZATION
dc.subjectINTEREST PARITY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL LENDING
dc.subjectINTERNATIONAL RESERVES
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTING
dc.subjectINVESTMENT CAPITAL
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT EXPENDITURE
dc.subjectINVESTMENT EXPENDITURES
dc.subjectINVESTMENT RATIO
dc.subjectINVESTMENT RISES
dc.subjectLABOR MARKET
dc.subjectLOW-INCOME COUNTRIES
dc.subjectLOW-INCOME COUNTRY
dc.subjectMACROECONOMIC INSTABILITY
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMACROECONOMIC STABILITY
dc.subjectMACROECONOMICS
dc.subjectMARGINAL COST
dc.subjectMARGINAL PRODUCTIVITY
dc.subjectMARKET DISCOUNT
dc.subjectMARKET EQUILIBRIUM
dc.subjectMONETARY FUND
dc.subjectNOMINAL EXCHANGE RATE
dc.subjectOIL RESERVES
dc.subjectOPEN ECONOMY
dc.subjectOPTIMAL INVESTMENT
dc.subjectOPTIMIZATION
dc.subjectOVERVALUATION
dc.subjectPOLICY RESPONSE
dc.subjectPOLICY RESPONSES
dc.subjectPRICE CHANGE
dc.subjectPRICE HIKE
dc.subjectPRICE OF EXPORTS
dc.subjectPRICE OF INVESTMENT GOODS
dc.subjectPRIVATE CAPITAL
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC EXTERNAL DEBT
dc.subjectPUBLIC INVESTMENT
dc.subjectPURCHASE PRICE
dc.subjectPURCHASING POWER
dc.subjectRATE OF RETURN
dc.subjectREAL APPRECIATION
dc.subjectREAL DEPRECIATION
dc.subjectREAL EXCHANGE APPRECIATION
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL EXCHANGE RATE ^ ^ ^ CHANGE
dc.subjectREAL EXCHANGE RATE APPRECIATION
dc.subjectREAL EXCHANGE RATES
dc.subjectRELATIVE PRICE
dc.subjectRELATIVE PRICES
dc.subjectREMITTANCES
dc.subjectREPAYMENT
dc.subjectREPUDIATION
dc.subjectRESERVES
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK PREMIUM
dc.subjectSAVINGS
dc.subjectSIDE EFFECTS
dc.subjectSOVEREIGN RISK
dc.subjectSTEADY STATE
dc.subjectSTOCK MARKET
dc.subjectSTRONG COMMODITY
dc.subjectSUPPLY CURVE
dc.subjectSUPPLY RESPONSE
dc.subjectSUPPLY SIDE
dc.subjectTAX
dc.subjectTAX CREDITS
dc.subjectTAX RATE
dc.subjectTAXATION
dc.subjectTIME HORIZON
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTOTAL INVESTMENT
dc.subjectTRADE BALANCE
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE OPENNESS
dc.subjectTRADE POLICY
dc.subjectTRADE SHARE
dc.subjectTRADE SHARES
dc.subjectTRADE SHOCK
dc.subjectUNCERTAINTY
dc.subjectVALUE ADDED
dc.subjectWORLD ECONOMY
dc.subjectWORLD INTEREST RATE
dc.subjectWORLD MARKETS
dc.subjectWORLD PRICE
dc.titleAid, Growth, and Real Exchange Rate Dynamicsen
dspace.entity.typePublication
okr.crossref.titleAid, Growth, And Real Exchange Rate Dynamics
okr.date.doiregistration2025-04-10T10:29:00.619519Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2008/01/8947106/aid-growth-real-exchange-rate-dynamics
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid810491468315280721
okr.identifier.doi10.1596/1813-9450-4480
okr.identifier.externaldocumentum000158349_20080116150507
okr.identifier.internaldocumentum8947106
okr.identifier.reportWPS4480
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/01/16/000158349_20080116150507/Rendered/PDF/wps4480.pdfen
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicEconomic Theory and Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicMacroeconomics and Economic Growth
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicationddcdf87a-9a86-50e0-b365-0d2c747a0607
relation.isAuthorOfPublication165325f4-d27a-5241-80a4-eb5495c41c24
relation.isAuthorOfPublication.latestForDiscoveryddcdf87a-9a86-50e0-b365-0d2c747a0607
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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