This paper investigates the role of aid in mitigating the adverse effects of commodity export price shocks on growth in … commodity-dependent countries. Using a large crosscountry dataset, we find that negative shocks matter for short-term growth … exchange rate substantially lower the adverse growth effect of shocks. While the mitigating effect of aid is significant in …

Not surprisingly, extreme negative export price shocks reduce growth. But these adverse effects can be mitigated …

growth; findings that do not result from biases induced by simultaneity, omitted variables, or unobserved country …

financial development and economic growth. The authors may be contacted at tbeck@worldbank.org or rlevine@csom.umn.edu …