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This paper assesses the optimal setting of fiscal spending and foreign exchange rate intervention policies in response to volatile foreign aid, in a small open economy model that incorporates typical features of low-income countries. Within a class of policy rules, it jointly considers the...
Persistent link: https://www.econbiz.de/10012866907
its volatility on sectoral growth by relying on panel dataset of 37 sub-Saharan African (SSA) countries for the period … economic transformation, aid volatility deteriorates sectoral value additions with huge impact on the non — tradable sector and … a no apparent effect on the agricultural sector. However, the deleterious effect of aid volatility on structural …
Persistent link: https://www.econbiz.de/10012958807
Persistent link: https://www.econbiz.de/10011845100
-varying parameter models that incorporate both stochastic volatility and a Heckman-type two-step estimation procedure that deals with …
Persistent link: https://www.econbiz.de/10011823990
Persistent link: https://www.econbiz.de/10009545523
has emerged about the possible negative effects of aid volatility itself. However, the cushioning effect of aid may … involve some volatility in aid flows, which then is not necessarily negative for growth. In this paper we examine to what … destabilizing. We measure aid volatility by several methods and assess procyclicality of aid with respect to exports, thus departing …
Persistent link: https://www.econbiz.de/10003793607
This paper reviews both the literature on aid volatility and also adds to that literature. In general, the focus of … this literature has been on the volatility of overall aid, while we focus more on the volatility of the individual aid … commitments and disbursements, particularly the latter. Key aid sectors in explaining total aid volatility relate to debt …
Persistent link: https://www.econbiz.de/10009516697
Purpose- This paper has put a demand-side empirical structure to the hypothesis that foreign aid volatility adversely …. Findings- The findings broadly show that foreign aid volatility does not adversely affect the demand-side choices of lifelong …
Persistent link: https://www.econbiz.de/10011408497
This paper describes some policy instruments set up by the IMF and the European Union in order to provide financial assistance to developing countries whose economies are affected by exogenous shocks from exports side. After briefly reviewing the IMF's CFF and the EU's STABEX, the paper presents...
Persistent link: https://www.econbiz.de/10013107577
not for all regions. The expansion of private flows has usually come at the cost of an increased volatility that adds up … to aid volatility, already considered to be an issue. We do not find any negative and significant correlations between …
Persistent link: https://www.econbiz.de/10012722421