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  • 1.
    Juselius, Katarina
    et al.
    University of Copenhagen, Denmark.
    Reshid, Abdulaziz
    Linnaeus University, School of Business and Economics, Department of Economics and Statistics.
    Tarp, Finn
    University of Copenhagen, Denmark ; United Nations University World Institute of Development Research (UNU-WIDER), Finland.
    The real exchange rate, foreign aid and macroeconomic transmission mechanisms in Tanzania and Ghana2017In: Journal of Development Studies, ISSN 0022-0388, E-ISSN 1743-9140, Vol. 53, no 7, p. 1075-1103Article in journal (Refereed)
    Abstract [en]

    A recent study of 36 sub-Saharan African countries found a positive impact of aid in the majority of these countries. However, for Tanzania and Ghana, two major aid recipients, aid did not seem to have been equally beneficial. This study singles out these two countries for a more detailed empirical investigation. The focus is on the effect of aid when allowing external and nominal factors to play a role in the macroeconomic transmission mechanism. We conclude that when monetary and external factors are properly accounted for, then aid has been pivotal to growth in both real GDP and investment.

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