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Business Cycle Fluctuations, Large Shocks, and Development Aid :, New Evidence, Era Dabla-Norris, Camelia Minoiu, Luis-Felipe Zanna

Abstract
We examine the cyclical properties of development aid using bilateral data for 22 donors and over 100 recipients during 1970?2005. We find that bilateral aid flows are on average procyclical with respect to business cycles in donor and recipient countries. However, they become countercyclical when recipient countries face large adverse shocks to the terms-of-trade or growth collapses-thus playing an important cushioning role. Aid outlays contract sharply during severe donor economic downturns; this effect is magnified by higher public debt levels. Additionally, bilateral aid flows are higher in the presence of IMF programs and are more countercyclical for recipient countries with stronger institutions
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Literature Review; III. Data, Definitions, and Descriptive Statistics; A. Data and Definitions of Aid and Business Cycle Variables; B. Data Exploration: Descriptive Statistics; IV. The Baseline Model and Main Empirical Results; A. The Baseline Model and Estimation Method; B. Aid and the Donor Cycle; C. Aid and the Recipient Cycle; D. Dynamic Effects; E. Aid and Donor-Recipient (Pair-wise) Shocks; V. Extensions and Robustness Analysis; A. Extensions; Aid and the Business Cycle: A Non-linear Relationship
Language
eng
Literary Form
non fiction
Note
"October 2010."
Physical Description
1 online resource (58 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781455210329

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