Discussion Paper Details
Please find the details for DP88 in an easy to copy and paste format below:
Title: Aid, Export Promotion and the Real Exchange Rate: An African Dilemma?
Author(s): Sweder van Wijnbergen
Publication Date: December 1985
Keyword(s): Africa, Development Aid, Export Performance, Real Exchange Rate Appreciation and Traded and Non-Traded Goods
Programme Area(s): International Trade and Regional Economics
Abstract: Africa, while a major aid recipient, has had disappointing export performance. This paper argues for a causal link: aid, by being partially spent on non-traded goods, leads to real appreciation and reduced export competitiveness. I demonstrate the importance of this effect by presenting econometric evidence on the positive relation between aid flows and real exchange rate appreciation and increases in the real wage in the traded-goods sector. Policy implications are discussed.
For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=88
van Wijnbergen, S. 1985. 'Aid, Export Promotion and the Real Exchange Rate: An African Dilemma?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=88