Aid, Volatility and Growth Again: When Aid Volatility Matters and When It Does Not

Lisa Chauvet and Patrick Guillaumont ()

No RP2008-78, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In previous papers we have argued that aid is likely to mitigate the negative effects of external shocks on economic growth (i.e., aid is more effective in countries that are more vulnerable to external shocks). Recently an important debate has emerged about the possible negative effects of aid volatility itself. However, the cushioning effect of aid may involve some volatility in aid flows, which then is not necessarily negative for growth. In this paper we examine to what extent the time profile of aid disbursements may contribute to an increase or a decrease of aid effectiveness.

Keywords: Economic assistance and foreign aid; Economic development (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-dev
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Citations: View citations in EconPapers (15)

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Related works:
Journal Article: Aid, Volatility, and Growth Again: When Aid Volatility Matters and When it Does Not (2009)
Working Paper: Aid, Volatility and Growth Again. When Aid Volatility Matters and When It Does Not (2009)
Working Paper: Aid, Volatility and Growth Again When Aid Volatility Matters and When it Does Not (2007)
Working Paper: Aid, Volatility and Growth Again. When Aid Volatility Matters and When it Does Not (2007)
Working Paper: Aid, Volatility and Growth Again. When Aid Volatility Matters and When it Does Not (2007)
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