Series: IMF Working Papers
Author(s): Joong Kang , Alessandro Prati , and Alessandro Rebucci
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 20 March 2013
Keywords: Common factors, Panel VARs, Exchange rate overvaluation, exchange rate, real exchange rate, exchange rate policy, trade liberalization, Economic Growth of Open Economies, Macroeconomic Analyses of Economic Development,
We use a heterogeneous panel VAR model identified through factor analysis to study the dynamic response of exports, imports, and per capita GDP growth to a “global” aid shock. We find that a global ai...