Post-disaster aid and development of the manufacturing sector: Lessons from a natural experiment in China
Erwin Bulte (),
Lihe Xu and
Xiaobo Zhang ()
European Economic Review, 2018, vol. 101, issue C, 441-458
We adopt a disaggregate approach to study the link between aid and Dutch Disease dynamics, using a natural experiment in China. Specifically, we examine whether post-disaster aid provided to a subsample of Chinese counties, devastated by an earthquake in 2008, affects the sectoral composition of local economies. Using different methods we consistently find that counties receiving (more) aid — even “nearby counties” not directly damaged by the earthquake — tend to suffer from a contraction of the manufacturing sector. Innovative features of the paper include its regional perspective; its identification strategy (resting on a special provision in Chinese policy—pairwise aid); and its focus on Dutch disease effects in the context of post-disaster aid.
Keywords: Aid; Growth; Dutch disease; China (search for similar items in EconPapers)
JEL-codes: F35 O14 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:101:y:2018:i:c:p:441-458
Access Statistics for this article
European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer
More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().