Scandinavian Working Papers in Economics
Working Papers,
Örebro University, School of Business
No 2008:3: Aid-Financed Public Investments and the Dutch Disease: Evidence from Tanzania
Emmanuel E. Asmah () and Jorgen Levin ()
Additional contact information
Emmanuel E. Asmah: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden
Jorgen Levin: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden
Abstract: In this paper we discuss the impact of scaling-up aid in Tanzania using an economy-wide dynamic CGE model. The major conclusions coming out from this work is that productivity effects matter. If additional aid and consequently increased public spending has a positive impact on productivity this would spur GDP growth and reduce the risk of an appreciating real exchange rate. In a way this resembles previous results in the aid-growth literature that aid has a positive impact on growth in a country with good economic policies assuming that good policies have a positive impact on productivity. Presenting various scenarios on the impact of additional aid a sustained GDP growth rate of around 7 percent would be possible to achieve in a modest scaling-up aid scenario without any significant changes in the real exchange rate.
Keywords: Aid:Dutch:Disease:Tanzania
34 pages, May 14, 2008
Full text files
wp-3-2008.pdf
Questions (including download problems) about the papers in this series should be directed to ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2024-02-05 17:13:02.