The Real Exchange Rate, Foreign Aid and Macroeconomic Transmission Mechanisms in Tanzania and Ghana

Katarina Juselius, Abdulaziz Reshid and Finn Tarp

No wp-2013-090, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: A recent study of 36 sub-Saharan African countries found a positive impact of aid in the absolute majority of these countries. However, for Tanzania and Ghana, two major aid recipients, aid did not seem to have been equally beneficial. This paper singles out these two countries for a more detailed empirical investigation. The focus is now on the effect of aid when allowing external and nominal factors to play a role in the macroeconomic transmission mechanism. We conclude that aid played a significantly positive―but very different―role in the two countries.

Keywords: Economic assistance and foreign aid; Econometric models (Economic development); Foreign exchange; Macroeconomics (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Real Exchange Rate, Foreign Aid and Macroeconomic Transmission Mechanisms in Tanzania and Ghana (2017)
Working Paper: The Real Exchange Rate, Foreign Aid and Macroeconomic Transmission Mechanisms in Tanzania and Ghana (2014)
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