2004
DOI: 10.2139/ssrn.878872
|View full text |Cite
|
Sign up to set email alerts
|

Aid and the Dutch Disease in Low-Income Countries: Informed Diagnoses for Prudent Prognoses

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1
1
1
1

Citation Types

0
9
0

Year Published

2005
2005
2021
2021

Publication Types

Select...
5
2
1

Relationship

0
8

Authors

Journals

citations
Cited by 13 publications
(9 citation statements)
references
References 5 publications
0
9
0
Order By: Relevance
“…Increased trade liberalization can facilitate aid absorption without leading to Dutch disease effects and is therefore one policy option available. Although Nkusu (2004) stresses that a failure to take sufficient account of idle capacity may lead to excessive concern about Dutch disease effects, unemployed capital and labor are relevant only if they can be brought into productive use in response to higher domestic demand. Hence, if critical inputs are in short supply (for example, specialized labor) and cannot be replaced by resources that are in abundant supply, full capacity can coexist with a generalized unemployment of factors.…”
Section: The Central Bank Sells the Foreignmentioning
confidence: 99%
“…Increased trade liberalization can facilitate aid absorption without leading to Dutch disease effects and is therefore one policy option available. Although Nkusu (2004) stresses that a failure to take sufficient account of idle capacity may lead to excessive concern about Dutch disease effects, unemployed capital and labor are relevant only if they can be brought into productive use in response to higher domestic demand. Hence, if critical inputs are in short supply (for example, specialized labor) and cannot be replaced by resources that are in abundant supply, full capacity can coexist with a generalized unemployment of factors.…”
Section: The Central Bank Sells the Foreignmentioning
confidence: 99%
“…Weak growth may in part have reflected the fact that high debt "overhangs" inhibited investment and growth Sachs 1988). Moreover, heavy official inflows-direct grants or loans-may have contributed to Dutch disease in LICs, in that these inflows encouraged currency overvaluations and undermined export competitiveness, thus damaging longer-term growth (Nkusu 2004; Rajan and Subramanian 2011).…”
Section: Figure 33 the First Wave: Debt Developments In Licsmentioning
confidence: 99%
“…[1] These studies include for example Adams (2005); Adam and Bevan (2004); Addison and Baliamoune-Lutz (2017); Adu and Denkyirah (2018); Arhenful (2013); Elbadawi (1999); Edwards and van Wijnbergen (1989); Issa and Ouattara (2008); Li and Rowe (2007); Nkusu (2004); Nyoni (1998); Ouattara and Strobl (2008); Radelet (2006); Rajan and Subramanian (2011); Sackey (2001); Selaya and Thiele (2010);Van Wijnbergen (1985); Vos (1998); White (1992); White and Wignaraja (1992);Younger (1992).…”
Section: Footnotementioning
confidence: 99%
“…Among these studies, some have found that development aid in ows have led to an appreciation of the real exchange rate in the recipient-countries (e.g., Addison and Baliamoune-Lutz, 2017;Adu and Denkyirah, 2018;Edwards and van Wijnbergen, 1989;Elbadawi, 1999;Ouattara and Strobl, 2008;Rajan and Subramanian, 2011;Van Wijnbergen, 1984;Vos, 1998;White, 1992;White and Wignaraja, 1992;Younger, 1992). Other studies have uncovered a real exchange rate depreciation effect of development aid in ows (e.g., Arhenful, 2013;Li and Rowe, 2007;Nkusu, 2004;Nyoni, 1998;Sackey, 2001;Selaya and Thiele, 2010). Issa and Ouattara (2008) have obtained no signi cant Dutch disease effect of development aid in the short-run or long-run in developing countries.…”
Section: Introductionmentioning
confidence: 99%