Aid and sectoral growth: Evidence from panel data
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Aid and sectoral growth : Evidence from panel data. / Selaya, Pablo; Thiele, Rainer .
I: Journal of Development Studies, Bind 46, Nr. 10, 2010, s. 1749-1766 .Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Aid and sectoral growth
T2 - Evidence from panel data
AU - Selaya, Pablo
AU - Thiele, Rainer
PY - 2010
Y1 - 2010
N2 - This article examines empirically the proposition that aid to poor countries is detrimental for external competitiveness, giving rise to Dutch disease type effects. At the aggregate level, aid is found to have a positive effect on growth. A sectoral decomposition shows that the effect is (i) significant and positive in the tradable and the nontradable sectors, and (ii) equally strong in both sectors. The article thus provides no empirical support for the hypothesis that aid reduces external competitiveness in developing countries. A possible reason for this finding is the existence of large idle labour capacity that prevents the real exchange rate from appreciating.
AB - This article examines empirically the proposition that aid to poor countries is detrimental for external competitiveness, giving rise to Dutch disease type effects. At the aggregate level, aid is found to have a positive effect on growth. A sectoral decomposition shows that the effect is (i) significant and positive in the tradable and the nontradable sectors, and (ii) equally strong in both sectors. The article thus provides no empirical support for the hypothesis that aid reduces external competitiveness in developing countries. A possible reason for this finding is the existence of large idle labour capacity that prevents the real exchange rate from appreciating.
U2 - 10.1080/00220388.2010.492856
DO - 10.1080/00220388.2010.492856
M3 - Journal article
VL - 46
SP - 1749
EP - 1766
JO - Journal of Development Studies
JF - Journal of Development Studies
SN - 0022-0388
IS - 10
ER -
ID: 32298230