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Aid and the Supply Side: Public Investment, Export Performance, and Dutch Disease in Low-Income Countries.

Abstract:

Contemporary policy debates on the macroeconomics of aid often concentrate on short-run Dutch disease effects, ignoring the possible supply-side impact of aid-financed public expenditure. In the simple model of aid and public expenditure presented here, public infrastructure generates an intertemporal productivity spillover, which may exhibit a sector-specific bias. The model also provides for a learning-by-doing externality, through which total factor productivity in the tradable sector is a...

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Publisher copy:
10.1093/wber/lhj011

Authors


Christopher S. Adam More by this author
David L. Bevan More by this author
Journal:
World Bank Economic Review
Volume:
20
Issue:
2
Publication date:
2006
DOI:
URN:
uuid:8449b2f1-25dc-4f23-97c0-dc9f779b156f
Local pid:
oai:economics.ouls.ox.ac.uk:9489
Language:
English

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