Search Results

You are looking at 1 - 10 of 89 items for :

  • "Aid-Receiving Countries" x
Clear All
Mr. Antonio Spilimbergo

Monetary Policy for Aid-Receiving Countries?” Policy Matters: Economic and Social Policies to Sustain Equitable Development A full and updated listing of external publications of IMF staff (from 1997 onward), including forthcoming publications, can be found in a searchable database on the “Research at the IMF” website at http://0-www-imf-org.library.svsu.edu/research .

Mr. Timothy D. Lane and Mr. Ales Bulir
This paper focuses on the macroeconomic aspects of fiscal management in aid-receiving countries. Despite the declining share of aid in budgets of donor countries, aid continues to play an important role in many developing countries. The paper first discusses the implications of aid in the economy as a whole and highlights the possibility of Dutch-disease effects of aid. Second, it discusses the implications of aid for short-term fiscal policy management?in particular, how actual or anticipated changes in aid receipts should be reflected in government spending.
Mr. Timothy D. Lane and Mr. Ales Bulir

management in aid-receiving countries. The paper first discusses the implications of aid in the economy as a whole. Second, it discusses the implications of aid for short-term fiscal policy management— in particular, how actual or anticipated changes in aid receipts should be reflected in government spending. In discussing the fiscal implications of aid, a basic question is whether aid receipts are any different from any other source of revenue. The literature has focused on two elements. First, in the long run, aid—unlike, for instance, tax revenues—tends to taper off

Mr. Joong S Kang, Mr. Alessandro Prati, and Mr. Alessandro Rebucci

the empirical analysis of the dynamic implications of this hypothesis. Specifically, we study the dynamic response of aid-receiving countries’ exports, imports, and per capita GDP growth (or growth for brevity) to a “global” aid shock (defined as the common component of each country’s aid-to-GDP ratio). To do so, we use a heterogeneous panel vector autoregression model identified through factor analysis, which constitutes a novel methodological approach in this literature. We find evidence consistent with a DD hypothesis, but also evidence that aid-receiving

Mr. Joong S Kang, Mr. Alessandro Prati, and Mr. Alessandro Rebucci
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 result, the relation between aid and growth is mixed, consistent with the ambiguous results in the existing literature. For most countries in the sample, when aid reduces exports and imports, it also reduces growth; and, when aid increases exports and imports, it also increases growth. This evidence is consistent with a DD hypothesis, but also shows that aid-receiving countries are not “doomed” to catch DD.