Not surprisingly, extreme negative export price shocks reduce growth. But these adverse effects 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...

Commodity export dependency confers ex post shocks and ex ante uncertainty upon producing countries. What reduces growth is not the prospect of volatile world prices, but the actual realization of negative shocks.Dehn estimates the effects on growth of commodity price shocks and uncertainty...