The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis

We herein investigate the short-run macroeconomic impact of aid in small developing countries (SDCs) by using a vector auto regression (VAR) model to study the impact of aid on net import (absorption) and domestic demand (spending). We focus on average country effects within two country sub-groups,...

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Autores principales: Hansen, Henrik, Headey, Derek D.
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2009
Materias:
Acceso en línea:https://hdl.handle.net/10568/161996
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author Hansen, Henrik
Headey, Derek D.
author_browse Hansen, Henrik
Headey, Derek D.
author_facet Hansen, Henrik
Headey, Derek D.
author_sort Hansen, Henrik
collection Repository of Agricultural Research Outputs (CGSpace)
description We herein investigate the short-run macroeconomic impact of aid in small developing countries (SDCs) by using a vector auto regression (VAR) model to study the impact of aid on net import (absorption) and domestic demand (spending). We focus on average country effects within two country sub-groups, and find substantial differences between ‘aid-dependent’ SDCs and other SDCs that are more dependent on natural resources, tourism or financial services. In aid-dependent SDCs, aid absorption more or less equals spending, although only half of the aid flow is absorbed and spent. In the non-aid-dependent group, aid does not seem to be absorbed or spent in any systematic fashion.
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spelling CGSpace1619962025-11-06T05:06:52Z The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis Hansen, Henrik Headey, Derek D. development aid macroeconomic analysis development policies public expenditure We herein investigate the short-run macroeconomic impact of aid in small developing countries (SDCs) by using a vector auto regression (VAR) model to study the impact of aid on net import (absorption) and domestic demand (spending). We focus on average country effects within two country sub-groups, and find substantial differences between ‘aid-dependent’ SDCs and other SDCs that are more dependent on natural resources, tourism or financial services. In aid-dependent SDCs, aid absorption more or less equals spending, although only half of the aid flow is absorbed and spent. In the non-aid-dependent group, aid does not seem to be absorbed or spent in any systematic fashion. 2009 2024-11-21T10:00:15Z 2024-11-21T10:00:15Z Working Paper https://hdl.handle.net/10568/161996 en Open Access application/pdf International Food Policy Research Institute Hansen, Henrik; Headey, Derek D. 2009. The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis. IFPRI Discussion Paper 863. https://hdl.handle.net/10568/161996
spellingShingle development aid
macroeconomic analysis
development policies
public expenditure
Hansen, Henrik
Headey, Derek D.
The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis
title The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis
title_full The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis
title_fullStr The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis
title_full_unstemmed The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis
title_short The short-run macroeconomic impact of foreign aid to small states: An agnostic time series analysis
title_sort short run macroeconomic impact of foreign aid to small states an agnostic time series analysis
topic development aid
macroeconomic analysis
development policies
public expenditure
url https://hdl.handle.net/10568/161996
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