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The three main financial inflows to developing countries have largely increased during the last two decades, despite the large debate in the literature regarding their effects on economic growth which is not yet clear-cut. An emerging literature investigates the dependence of their effects on...
Persistent link: https://www.econbiz.de/10012605579
This paper reviews evidence on the impact of fuel subsidy reform on household welfare in developing countries. On … average, the burden of subsidy reform is neutrally distributed across income groups; a $0.25 decrease in the per liter subsidy … subsidies than the bottom. Issues that need to be addressed when undertaking subsidy reform are also discussed, including the …
Persistent link: https://www.econbiz.de/10014397638
This study explores whether IMF-supported programs in low-income countries (LICs) catalyze Official Development Assistance (ODA). Based on a comprehensive set of ODA measures and using Propensity Score Matching approach to address selection bias, we show that programs addressing policy or...
Persistent link: https://www.econbiz.de/10014411810
This paper analyzes the macroeconomic impacts of the creation, accumulation, and use of counterpart funds. It draws attention to the importance of including counterpart funds in the design of macroeconomic policies to ensure their consistency. It shows that the creation or accumulation of...
Persistent link: https://www.econbiz.de/10014396384
Counterpart funds generated through foreign currency or commodity aid have again become an issue of interest, in view of the substantial buildup of these funds. Contrary to the usual approach a model is developed in this paper, which takes account of the budgetary impact, supply-side and money...
Persistent link: https://www.econbiz.de/10014398134
Persistent link: https://www.econbiz.de/10010479409
Using a dynamic stochastic general equilibrium model, we study the channels through which natural disaster shocks affect macroeconomic outcomes and welfare in disaster-prone countries. We solve the model using Taylor projection, a solution method that is shown to deal effectively with...
Persistent link: https://www.econbiz.de/10012112128
We develop a simple macroeconomic model that assesses the effects of higher foreign aid on output growth and other macroeconomic variables, including the real exchange rate. The model is easily tractable and requires estimation of only a few basic parameters. It takes into account the impact of...
Persistent link: https://www.econbiz.de/10014403185
This paper surveys the economic literature on the scaling-up of aid to Africa. It provides a checklist of issues that need to be considered when preparing a long term macroeconomic projection for a country involving the assumption of a significant increase in aid. Such scaling-up scenarios are...
Persistent link: https://www.econbiz.de/10014404188
We examine the effects of aid on growth-- in cross-sectional and panel data--after correcting for the bias that aid typically goes to poorer countries, or to countries after poor performance. Even after this correction, we find little robust evidence of a positive (or negative) relationship...
Persistent link: https://www.econbiz.de/10014400078