TY - JOUR
T1 - The Real Exchange Rate, Foreign Aid and Macroeconomic Transmission Mechanisms in Tanzania and Ghana
AU - Juselius, Katarina
AU - Reshid, Abdulaziz Abrar
AU - Tarp, Finn
PY - 2017
Y1 - 2017
N2 - A recent study of 36 sub-Saharan African countries found a positive impact of aid in the majority of these countries. However, for Tanzania and Ghana, two major aid recipients, aid did not seem to have been equally beneficial. This study singles out these two countries for a more detailed empirical investigation. The focus is on the effect of aid when allowing external and nominal factors to play a role in the macroeconomic transmission mechanism. We conclude that when monetary and external factors are properly accounted for, then aid has been pivotal to growth in both real GDP and investment.
AB - A recent study of 36 sub-Saharan African countries found a positive impact of aid in the majority of these countries. However, for Tanzania and Ghana, two major aid recipients, aid did not seem to have been equally beneficial. This study singles out these two countries for a more detailed empirical investigation. The focus is on the effect of aid when allowing external and nominal factors to play a role in the macroeconomic transmission mechanism. We conclude that when monetary and external factors are properly accounted for, then aid has been pivotal to growth in both real GDP and investment.
U2 - 10.1080/00220388.2017.1305106
DO - 10.1080/00220388.2017.1305106
M3 - Journal article
VL - 53
SP - 1075
EP - 1103
JO - Journal of Development Studies
JF - Journal of Development Studies
SN - 0022-0388
IS - 7
ER -