Does Aid Mitigate External Shocks?
|Abstract||The authors investigate the role of aid in mitigating the adverse effects of commodity export price shocks on growth in commodity-dependent countries. Using a large cross-country dataset, they find that negative shocks matter for short-term growth, while the ex ante risk of shocks does not seem to matter. They also find that both the level of aid and the flexibility of the exchange rate substantially lower the adverse growth effect of shocks. Whi ... [truncated at 450 characters in length]|
|Creator||Paul Collier; Benedikt Goderis;|