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Aid-financed public investments and the Dutch disease: evidence from Tanzania
University of Cape Coast Ghana.
Örebro University, Swedish Business School at Örebro University.ORCID iD: 0000-0003-4078-7349
2008 (English)Report (Other academic)
Abstract [en]

In this paper we discuss the impact of scaling-up aid in Tanzania using an economy-wide dynamic CGE model. The major conclusions coming out from this work is that productivity effects matter. If additional aid and consequently increased public spending has a positive impact on productivity this would spur GDP growth and reduce the risk of an appreciating real exchange rate. In a way this resembles previous results in the aid-growth literature that aid has a positive impact on growth in a country with good economic policies assuming that good policies have a positive impact on productivity. Presenting various scenarios on the impact of additional aid a sustained GDP growth rate of around 7 percent would be possible to achieve in a modest scaling-up aid scenario without any significant changes in the real exchange rate.

Place, publisher, year, edition, pages
Örebro: Örebro university , 2008. , p. [34]
Series
Working paper series, Swedish business school at Örebro university, ISSN 1403-0586 ; 3
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-3841OAI: oai:DiVA.org:oru-3841DiVA, id: diva2:138139
Available from: 2009-01-15 Created: 2009-01-15 Last updated: 2017-10-18Bibliographically approved

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http://www.oru.se/PageFiles/15377/wp2008-03.pdf

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Levin, Jörgen

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
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Language
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  • nn-NB
  • sv-SE
  • Other locale
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Output format
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  • asciidoc
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