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 …

: (i) monetary volatility negatively affects long-run growth; (ii) the relation between nominal volatility and growth … increases the negative effect of nominal volatility on mean growth. …

exchange rate flexibility are partly substitutes. We investigate whether aid has historically been targeted at shock …

This paper considers the linkages between output growth and output volatility for the sample of G7 countries over the … volatility are highly intertwined, with spillovers taking place into all four directions; ii) the importance of spillovers has … been the largest transmitter of output and volatility shocks to other countries. Generalized impulse response analyses …

-stationary productivity shock process. Third, the observed data favor the quadratic benchmark RBC and financial frictions models over the …

, imports, and per capita GDP growth to a global aid shock (the common component of individual country aid-to-GDP ratios). We … find that the estimated cumulative resposive of exports and per capita GDP growth to a global aid shock are strongly … exchange rates, exports and per capita GDP growth respond positively to a global aid shock. This evidence suggests that …