Aid, Disbursement Delays, and the Real Exchange Rate

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Jarotschkin, Alexandra
dc.contributor.author
Kraay, Aart
dc.date.accessioned
2013-09-26T15:57:17Z
dc.date.available
2013-09-26T15:57:17Z
dc.date.issued
2013-05
dc.date.lastModified
2021-04-23T14:03:23Z
dc.description.abstract
Aid donors and recipients have long been concerned that aid inflows may lead to an appreciation of the real exchange rate and an associated loss of competitiveness. This paper provides new evidence of the dynamic effects of aid on the real exchange rate, using an identification strategy that exploits the long delays between the approval of aid projects and the subsequent disbursements on them. These disbursement delays enable the isolation of a source of variation in aid inflows that is uncorrelated with contemporaneous macroeconomic shocks that may drive both aid and the real exchange rate. Using this predetermined component of aid as an instrument, there is little evidence that aid inflows lead to significant real exchange rate appreciations.
en
dc.identifier
http://documents.worldbank.org/curated/en/2013/06/17919049/aid-disbursement-delays-real-exchange-rate
dc.identifier.uri
http://hdl.handle.net/10986/15860
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 6501
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
AUTOREGRESSION
dc.subject
BANK LENDING
dc.subject
BENCHMARK
dc.subject
BID
dc.subject
BLACK MARKET
dc.subject
CAPITAL INFLOWS
dc.subject
CD
dc.subject
CENTRAL BANKS
dc.subject
CHECKS
dc.subject
COMPETITIVENESS
dc.subject
COUNTRY FIXED EFFECTS
dc.subject
COUNTRY SAMPLE
dc.subject
CREDITOR
dc.subject
CREDITORS
dc.subject
DEBTOR
dc.subject
DEBTOR REPORTING SYSTEM
dc.subject
DEFLATORS
dc.subject
DEVELOPING COUNTRIES
dc.subject
DEVELOPING COUNTRY
dc.subject
DEVELOPMENT ASSISTANCE
dc.subject
DEVELOPMENT BANK
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
DEVELOPMENT POLICY
dc.subject
DISBURSEMENT
dc.subject
DISBURSEMENTS
dc.subject
DISEQUILIBRIUM
dc.subject
DOMESTIC FINANCIAL MARKETS
dc.subject
DOMESTIC PRICE
dc.subject
DOMESTIC PRICE LEVEL
dc.subject
ECONOMIC PERFORMANCE
dc.subject
ECONOMIC REVIEW
dc.subject
ELASTICITY
dc.subject
ELASTICITY OF SUPPLY
dc.subject
EMPIRICAL EVIDENCE
dc.subject
EXCHANGE RATE ARRANGEMENTS
dc.subject
EXCHANGE RATE REGIME
dc.subject
EXCHANGE RATE REGIMES
dc.subject
EXPORT SECTOR
dc.subject
EXTERNALITY
dc.subject
FINANCIAL MARKETS
dc.subject
FINANCIAL SUPPORT
dc.subject
FIXED EXCHANGE RATE
dc.subject
FLEXIBLE EXCHANGE RATE
dc.subject
FLEXIBLE EXCHANGE RATE REGIME
dc.subject
FLEXIBLE EXCHANGE RATE REGIMES
dc.subject
FOREIGN EXCHANGE
dc.subject
GDP
dc.subject
GOVERNMENT SPENDING
dc.subject
HIGH INFLATION
dc.subject
INCOME
dc.subject
INCOME COUNTRIES
dc.subject
INDIVIDUAL LOANS
dc.subject
INDUSTRIALIZATION
dc.subject
INSTRUMENT
dc.subject
INTERNATIONAL BANK
dc.subject
INTERNATIONAL DEVELOPMENT
dc.subject
INTERNATIONAL ECONOMICS
dc.subject
INTERNATIONAL MONETARY FUND
dc.subject
LOAN
dc.subject
LOAN APPROVAL
dc.subject
LOAN APPROVALS
dc.subject
LONG TERM
dc.subject
M1
dc.subject
M2
dc.subject
MACROECONOMIC CRISIS
dc.subject
MACROECONOMIC MANAGEMENT
dc.subject
MACROECONOMIC POLICIES
dc.subject
MACROECONOMIC POLICY
dc.subject
MACROECONOMIC SHOCKS
dc.subject
MACROECONOMICS
dc.subject
MONETARY FUND
dc.subject
MONETARY POLICY
dc.subject
MULTILATERAL TRADE
dc.subject
MULTIPLIERS
dc.subject
NOMINAL EXCHANGE RATE
dc.subject
OPEN ECONOMY
dc.subject
OVERVALUATION
dc.subject
POLICY RESEARCH
dc.subject
POLICY RESPONSE
dc.subject
POVERTY REDUCTION
dc.subject
PRICE LEVELS
dc.subject
PUBLIC SPENDING
dc.subject
REAL APPRECIATION
dc.subject
REAL EXCHANGE
dc.subject
REAL EXCHANGE RATE
dc.subject
REAL EXCHANGE RATES
dc.subject
RELATIVE PRICE
dc.subject
REPAYMENTS
dc.subject
RESERVE
dc.subject
RESERVES
dc.subject
SIDE EFFECTS
dc.subject
SMALL COUNTRIES
dc.subject
TECHNICAL ASSISTANCE
dc.subject
TRANSFER PARADOX
dc.subject
UNDERVALUATION
dc.subject
WORLD ECONOMY
dc.subject
Dutch disease
dc.subject
aid
dc.title
Aid, Disbursement Delays, and the Real Exchange Rate
en
okr.date.disclosure
2013-06-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2013/06/17919049/aid-disbursement-delays-real-exchange-rate
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Finance and Markets
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6501
okr.identifier.externaldocumentum
000158349_20130625102644
okr.identifier.internaldocumentum
17919049
okr.identifier.report
WPS6501
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/06/25/000158349_20130625102644/Rendered/PDF/WPS6501.pdf
en
okr.sector
Public Administration, Law, and Justice :: General public administration sector
okr.theme
Public sector governance :: Public expenditure, financial management and procurement
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.topic
Macroeconomics and Economic Growth :: Macroeconomic Management
okr.topic
Macroeconomics and Economic Growth :: Economic Stabilization
okr.topic
Private Sector Development :: Emerging Markets
okr.topic
Economic Theory and Research
okr.unit
Macroeconomics and Growth Team, Development Research Group
okr.volume
1 of 1

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