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Aid and the supply side : public investment, export performance, and Dutch disease in low-income countries (Английский)

Contemporary policy debates on the macroeconomics of aid often concentrate on short-run Dutch disease effects, ignoring the possible supply-side impact of aid financed public expenditure. In the simple model of aid and public expenditure presented here, public infrastructure generates an inter-temporal productivity spillover, which may exhibit a sector-specific bias. The model also provides for a learning-by-doing externality, through which total...
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