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The macroeconomic impact of aid volatility

John Hudson and Paul Mosley

Economics Letters, 2008, vol. 99, issue 3, 486-489

Abstract: We analyse the impact of aid volatility on GDP/GNP shares of expenditure. Given the level of aid, positive and negative volatility reduce investment and government expenditure shares. But the former reduces import share and the latter increases consumers' expenditure share.

Date: 2008
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