EconPapers    
Economics at your fingertips  
 

Aid, Remittances, the Dutch Disease, Refugees, and Kenya

Richard Chisik, Nazanin Behzadan, Harun Onder and Apurva Sanghi (asanghi@worldbank.org)
Additional contact information
Apurva Sanghi: The World Bank

No 62, Working Papers from Toronto Metropolitan University, Department of Economics

Abstract: In this paper we show that an important determinant of a foreign transfer generating a Dutch disease effect is the income of the recipient. The marginal propensity to consume luxury services is larger for wealthier recipients who are more likely to receive the benefits of foreign aid than they are to receive remittances. In a three good model of international trade with production we show that foreign aid can generate a Dutch disease and remittances can foster economic growth. We empirically verify these hypotheses with data from two panels of data covering the years 1980-2009. The data for Kenya, with its large population of displaced person in refugee camps, however, fails to support these propositions. The Kenyan data suggests that certain restrictions on refugees reduce the beneficial effect of their received remittances on the host economy.

Pages: 42 pages
Date: 2016-02
New Economics Papers: this item is included in nep-opm
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.arts.ryerson.ca/economics/repec/pdfs/wp062.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rye:wpaper:wp062

Access Statistics for this paper

More papers in Working Papers from Toronto Metropolitan University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Doosoo Kim (doosoo@torontomu.ca).

 
Page updated 2024-12-28
Handle: RePEc:rye:wpaper:wp062