Twimukye, Evarist P.; Nabiddo, Winnie; Matovu, John Mary - Economic Policy Research Centre (EPRC) - 2009
It has been argues that increased aid causes Dutch disease as a result of appreciation of the exchange rate which reduces the competitiveness of the country's exports. In this paper, we argue that if the aid is used productively, there are both short and long term gains. Applying a recursive...