Aid, Growth, and Real Exchange Rate Dynamics

Devarajan, Shantayanan ; Go, Delfin S. ; Page, John ; Robinson, Sherman ; Thierfelder, Karen

World Bank, Washington, DC

关键词: ABSORPTIVE CAPACITY;    ADJUSTMENT COST;    ADJUSTMENT COST FUNCTION;    ADJUSTMENT COSTS;    AGGREGATE CONSUMPTION;   

DOI  :  10.1596/1813-9450-4480
RP-ID  :  WPS4480

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Devarajan, Go, Page, Robinson, andThierfelder argued that if aid is about the future andrecipients are able to plan consumption and investmentdecisions optimally over time, then the potential problem ofan aid-induced appreciation of the real exchange rate (Dutchdisease) does not occur.In their paper, "Aid, Growthand Real Exchange Rate Dynamics," this key result isderived without requiring extreme assumptions or additionalproductivity story. The economic framework is a standardneoclassical growth model, based on the familiar Salter-Swancharacterization of an open economy, with full dynamicsavings and investment decisions. It does require that themodel is fully dynamic in both savings and investmentdecisions. An important assumption is that aid should bepredictable for intertemporal smoothing to take place. Ifaid volatility forces recipients to be constrained andmyopic, Dutch disease problems become an issue.