Aid, the Real Exchange Rate and Why Policy Matters: The Cases of Morocco and Tunisia

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Aid, the Real Exchange Rate and Why Policy Matters : The Cases of Morocco and Tunisia. / Addison, Anthony John; Baliamoune-Lutz, Mina.

In: The Journal of Development Studies, Vol. 53, No. 7, 2017, p. 1104-1121.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Addison, AJ & Baliamoune-Lutz, M 2017, 'Aid, the Real Exchange Rate and Why Policy Matters: The Cases of Morocco and Tunisia', The Journal of Development Studies, vol. 53, no. 7, pp. 1104-1121. https://doi.org/10.1080/00220388.2017.1303673

APA

Addison, A. J., & Baliamoune-Lutz, M. (2017). Aid, the Real Exchange Rate and Why Policy Matters: The Cases of Morocco and Tunisia. The Journal of Development Studies, 53(7), 1104-1121. https://doi.org/10.1080/00220388.2017.1303673

Vancouver

Addison AJ, Baliamoune-Lutz M. Aid, the Real Exchange Rate and Why Policy Matters: The Cases of Morocco and Tunisia. The Journal of Development Studies. 2017;53(7):1104-1121. https://doi.org/10.1080/00220388.2017.1303673

Author

Addison, Anthony John ; Baliamoune-Lutz, Mina. / Aid, the Real Exchange Rate and Why Policy Matters : The Cases of Morocco and Tunisia. In: The Journal of Development Studies. 2017 ; Vol. 53, No. 7. pp. 1104-1121.

Bibtex

@article{3d7ff09df1d84681a7346df9dfcca863,
title = "Aid, the Real Exchange Rate and Why Policy Matters: The Cases of Morocco and Tunisia",
abstract = "Every form of foreign-exchange inflow, including aid, can potentially cause real-exchange rate apprecia-tion, with adverse consequences for the production of tradables ({\textquoteleft}Dutch Disease{\textquoteright}). Whether it does so depends on thepolicy response to the inflow. This paper investigates the issue for Morocco and Tunisia, over 1980–2009. We find thataid led to a real appreciation in Morocco, but had no effect on Tunisia{\textquoteright}s real exchange rate. This confirms theimportance of the macroeconomic framework in which aid is provided, and the key role for infrastructure and othersupply-side improvements in determining the final real-economy impact of aid and other inflows.",
author = "Addison, {Anthony John} and Mina Baliamoune-Lutz",
year = "2017",
doi = "10.1080/00220388.2017.1303673",
language = "English",
volume = "53",
pages = "1104--1121",
journal = "Journal of Development Studies",
issn = "0022-0388",
publisher = "Taylor & Francis Online",
number = "7",

}

RIS

TY - JOUR

T1 - Aid, the Real Exchange Rate and Why Policy Matters

T2 - The Cases of Morocco and Tunisia

AU - Addison, Anthony John

AU - Baliamoune-Lutz, Mina

PY - 2017

Y1 - 2017

N2 - Every form of foreign-exchange inflow, including aid, can potentially cause real-exchange rate apprecia-tion, with adverse consequences for the production of tradables (‘Dutch Disease’). Whether it does so depends on thepolicy response to the inflow. This paper investigates the issue for Morocco and Tunisia, over 1980–2009. We find thataid led to a real appreciation in Morocco, but had no effect on Tunisia’s real exchange rate. This confirms theimportance of the macroeconomic framework in which aid is provided, and the key role for infrastructure and othersupply-side improvements in determining the final real-economy impact of aid and other inflows.

AB - Every form of foreign-exchange inflow, including aid, can potentially cause real-exchange rate apprecia-tion, with adverse consequences for the production of tradables (‘Dutch Disease’). Whether it does so depends on thepolicy response to the inflow. This paper investigates the issue for Morocco and Tunisia, over 1980–2009. We find thataid led to a real appreciation in Morocco, but had no effect on Tunisia’s real exchange rate. This confirms theimportance of the macroeconomic framework in which aid is provided, and the key role for infrastructure and othersupply-side improvements in determining the final real-economy impact of aid and other inflows.

U2 - 10.1080/00220388.2017.1303673

DO - 10.1080/00220388.2017.1303673

M3 - Journal article

VL - 53

SP - 1104

EP - 1121

JO - Journal of Development Studies

JF - Journal of Development Studies

SN - 0022-0388

IS - 7

ER -

ID: 334021049