LEADER 06513oam 22013454 450 001 9910827364503321 005 20240402050625.0 010 $a1-4623-9211-3 010 $a1-4527-6825-0 010 $a1-4518-7062-0 010 $a1-282-84155-6 010 $a9786612841552 035 $a(CKB)3170000000055110 035 $a(EBL)1608019 035 $a(SSID)ssj0000944035 035 $a(PQKBManifestationID)11564343 035 $a(PQKBTitleCode)TC0000944035 035 $a(PQKBWorkID)10983253 035 $a(PQKB)10847573 035 $a(OCoLC)761966586 035 $a(IMF)WPIEE2008204 035 $a(MiAaPQ)EBC1608019 035 $a(EXLCZ)993170000000055110 100 $a20020129d2008 uf 0 101 0 $aeng 135 $aurcnu|||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aForeign Aid and Real Exchange Rate Adjustments in a Financially Constrained Dependent Economy /$fStephen Turnovsky, Serpil Tekin, Valerie Cerra 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2008. 215 $a1 online resource (47 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/08/204 300 $aDescription based upon print version of record. 311 $a1-4519-1515-2 320 $aIncludes bibliographical references. 327 $aContents; I. Introduction; II. Two Sector Model of Foreign Aid; A. The Economic Structure; B. Macroeconomic Equilibrium; III. Steady State Equilibrium; A. Long-Run Effects of Transfers on the Relative Price; B. Transfers, Economic Activity, and the Dutch Disease; IV. Numerical Analysis; A. Calibration; B. Optimal Government Spending; C. Initial Benchmark Equilibria; V. Foreign Aid Flows: General Characteristics of Real Exchange Rates; VI. Pure Transfer; A. Traded Sector is Capital Intensive: (? > ? ); B. Nontraded sector is capital intensive: (? >? ) 327 $aVII. Productive Government Spending in the Traded Sector A. Traded sector is capital intensive (? > ? ); B. Nontraded sector is capital intensive (? >? ); VIII. Productive Government Spending in the Nontraded Sector; IX. Welfare Analysis; X. Effect of Cost of Debt; XI. Conclusions; Tables; 1. The Benchmark Economy; 2. Key Steady-State Equilibrium Ratios; 3. Steady-State Responses to Permanent Changes; 4. Welfare Analysis; Figures; 1. Capital and Debt; 2. Financial Variables; 3. Sectoral Activity and Output; 4. Consumption and Welfare; 5. Sensitivity to Borrowing Premium: Untitled Transfer 327 $a6. Sensitivity to Borrowing Premium: Productive Transfer to Traded Sector 7. Sensitivity to Borrowing Premium: Productive Transfer to Nontraded Sector; Appendix; References 330 3 $aA dynamic dependent-economy model is developed to investigate the role of the real exchange rate in determining the effects of foreign aid. If capital is perfectly mobile between sectors, untied aid has no longrun impact on the real exchange rate. A decline in the traded sector occurs because aid, being denominated in traded output, substitutes for exports in financing imports. While untied aid causes short-run real exchange appreciation, this response is very temporary and negligibly small. Tied aid, by influencing sectoral productivity, does generate permanent relative price effects. The analysis, which employs extensive numerical simulations, emphasizes the tradeoffs between real exchange adjustments, long-run capital accumulation, and economic welfare, associated with alternative forms of foreign aid. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2008/204 606 $aEconomic assistance$xEconometric models 606 $aForeign exchange rates$xEconometric models 606 $aStructural adjustment (Economic policy)$xEconometric models 606 $aExports and Imports$2imf 606 $aForeign Exchange$2imf 606 $aMacroeconomics$2imf 606 $aPublic Finance$2imf 606 $aProduction and Operations Management$2imf 606 $aEmployment$2imf 606 $aUnemployment$2imf 606 $aWages$2imf 606 $aIntergenerational Income Distribution$2imf 606 $aAggregate Human Capital$2imf 606 $aAggregate Labor Productivity$2imf 606 $aForeign Aid$2imf 606 $aMacroeconomics: Consumption$2imf 606 $aSaving$2imf 606 $aWealth$2imf 606 $aNational Government Expenditures and Related Policies: General$2imf 606 $aCurrency$2imf 606 $aForeign exchange$2imf 606 $aInternational economics$2imf 606 $aPublic finance & taxation$2imf 606 $aReal exchange rates$2imf 606 $aCapital productivity$2imf 606 $aForeign aid$2imf 606 $aConsumption$2imf 606 $aExpenditure$2imf 606 $aInternational relief$2imf 606 $aEconomics$2imf 606 $aExpenditures, Public$2imf 607 $aTurkey$2imf 615 0$aEconomic assistance$xEconometric models. 615 0$aForeign exchange rates$xEconometric models. 615 0$aStructural adjustment (Economic policy)$xEconometric models. 615 7$aExports and Imports 615 7$aForeign Exchange 615 7$aMacroeconomics 615 7$aPublic Finance 615 7$aProduction and Operations Management 615 7$aEmployment 615 7$aUnemployment 615 7$aWages 615 7$aIntergenerational Income Distribution 615 7$aAggregate Human Capital 615 7$aAggregate Labor Productivity 615 7$aForeign Aid 615 7$aMacroeconomics: Consumption 615 7$aSaving 615 7$aWealth 615 7$aNational Government Expenditures and Related Policies: General 615 7$aCurrency 615 7$aForeign exchange 615 7$aInternational economics 615 7$aPublic finance & taxation 615 7$aReal exchange rates 615 7$aCapital productivity 615 7$aForeign aid 615 7$aConsumption 615 7$aExpenditure 615 7$aInternational relief 615 7$aEconomics 615 7$aExpenditures, Public 676 $a338.91 700 $aTurnovsky$b Stephen$0123336 701 $aTekin$b Serpil$01706813 701 $aCerra$b Valerie$01680576 801 0$bDcWaIMF 906 $aBOOK 912 $a9910827364503321 996 $aForeign Aid and Real Exchange Rate Adjustments in a Financially Constrained Dependent Economy$94094557 997 $aUNINA