Series: IMF Working Papers
Author(s): Stephen Turnovsky , Serpil Tekin , and Valerie Cerra
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 August 2008
Keywords: real exchange rate, welfare analysis, exchange rate, capital stock, capital markets, capital intensity,
A dynamic dependent-economy model is developed to investigate the role of the real exchange rate in determining the effects of foreign aid. If capital is perfectly mobile between sectors, untied aid has no longrun...