Kang, Joong Shik; Prati, Alessandro; Rebucci, Alessandro - International Monetary Fund (IMF) - 2013
We use a heterogeneous panel VAR model identified through factor analysis to study the dynamic response of exports, imports, and per capita GDP growth to a “global” aid shock. We find that a global aid shock can affect exports, imports, and growth either positively or negatively. As a...