Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90484
Authors: 
Shiferaw, Admasu
Hailu, Degol
Year of Publication: 
2010
Series/Report no.: 
Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 57
Abstract: 
This paper tracks a group of developing countries which started off in the 1960s with a comparable and relatively high aid dependency but followed two different paths in the subsequent four decades: where one sub-group of countries became increasingly aid dependent while the other sub-group nearly exited aid-dependency. It then compares the trajectories of key macroeconomic variables in the two groups of countries in a bid to provide broad sketches of an aid-exit strategy. The paper shows that the likelihood of exiting aid dependency increases with the rate of investment and the share of manufacturing in GDP while it declines with the size of the saving-investment gap and the rate of inflation.
Subjects: 
Aid Dependency
Aid Exit
Investment
Domestic Saving
Inflation
JEL: 
F35
O16
Document Type: 
Working Paper

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