When is aid destabilizing? Analysing profiles of aid flows in four low income countries

The paper analyses aid volatility through country-case studies the cyclicality and stabilising profiles of aid inflows

From:
Foreign, Commonwealth & Development Office
Published
1 January 2017
Document Type:
Working Paper
Theme:
Economic Growth
Authors:
Gabin, K.E., Boussichas, M, Guillaumont, P

Abstract

The paper, building on the Chauvet and Guillaumont (2009) analysis of aid volatility, examines through country-case studies the cyclicality and stabilizing profiles of aid inflows. Chauvet and Guillaumont (2009) identified 4 different profiles of aid: Procyclical - Stabilizing, Procyclical - Destabilizing, Contracyclical – Stabilizing, and Contracyclical- Destabilizing. The authors analyse external and domestic factors explaining how these profiles occurred and what are their macroeconomics consequences and implications for aid management.

This is part of the ‘Financial Volatility, Macroprudential Regulation and Economic Growth in Low-Income Countries’ project.

Citation

Kilama Eric Gabin, Matthieu Boussichas, Patrick Guillaumont. (2017) When is aid destabilizing? Analysing profiles of aid flows in four low income countries.

When is aid destabilizing? Analysing profiles of aid flows in four low income countries (PDF, 1630KB)

Published 1 January 2017
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