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TitreAid Allocation Effects on Growth and Poverty A CGE Framework
AuteurTwimukye, Evarist ; Nabiddo, Winnie ; Matovu, John Mary
ThèmeDevelopment Aid
Date de publication2009
ÉditeurEconomic Policy Research Centre (EPRC)
Nombre de pages51 pages
LangueEnglish
Couverture géographiqueUganda
Mots clésPoverty Alleviation, Exchange Rates
RésuméIt has been argued that increased aid causes Dutch disease as a result of appreciation of the exchange rate which reduces the competitiveness of the country’s exports. In this paper, we argue that if the aid is used productively, there are both short and long-term gains. Applying a recursive dynamic general equilibrium model on Uganda, we find that while the currency appreciates and some exports decline, the overall impact on growth outweighs the losses in competitiveness. In addition, if aid is used productively, poverty would be substantially reduced as long as the aid increase is sustained.
Détenteur du copyrightEconomic Policy Research Centre (EPRC)
Copyright URLhttp://www.eprc.or.ug
Taille du fichier260257 MB
Format du fichierPDF
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