Aid, Disbursement Delays, and the Real Exchange Rate

Jarotschkin, Alexandra ; Kraay, Aart

World Bank, Washington, DC

关键词: AUTOREGRESSION;    BANK LENDING;    BENCHMARK;    BID;    BLACK MARKET;   

DOI  :  10.1596/1813-9450-6501
RP-ID  :  WPS6501

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Aid donors and recipients have long beenconcerned that aid inflows may lead to an appreciation ofthe real exchange rate and an associated loss ofcompetitiveness. This paper provides new evidence of thedynamic effects of aid on the real exchange rate, using anidentification strategy that exploits the long delaysbetween the approval of aid projects and the subsequentdisbursements on them. These disbursement delays enable theisolation of a source of variation in aid inflows that isuncorrelated with contemporaneous macroeconomic shocks thatmay drive both aid and the real exchange rate. Using thispredetermined component of aid as an instrument, there islittle evidence that aid inflows lead to significant realexchange rate appreciations.