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Aid and Dutch Disease: Evidence from Moroccan and Tunisian Time-Series Data

Tony Addison and Mina Baliamoune

No wp-2013-132, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We examine aid-induced Dutch Disease—after controlling for the effects of remittances and FDI flows—in the context of two North African countries, Morocco and Tunisia. We do so by performing a multivariate time series analysis of aggregated annual data over the period 1980-2009. Aid causes real exchange rate appreciation in the case of Morocco, especially in the long run, but has no effect on the real exchange rate in the case of Tunisia.

Keywords: Econometric models (Economic development); Foreign investments (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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