TY  - BOOK
AU  - Schmidt-Hebbel,Klaus
AU  - Elbadawi,Ibrahim A.
AU  - Kaltani,Linda
AU  - Schmidt-Hebbel,Klaus
TI  - Post-Conflict Aid, Real Exchange Rate Adjustment, and Catch-Up Growth
PY  - 2007///
CY  - Washington, D.C.
PB  - The World Bank
KW  - Absorptive Capacities
KW  - Assets
KW  - Conflict and Development
KW  - Currencies and Exchange Rates
KW  - Current Account
KW  - Debt Markets
KW  - Depreciation
KW  - Development Economics and Aid Effectiveness
KW  - Domestic-Currency
KW  - Dutch Disease
KW  - Economic Conditions and Volatility
KW  - Economic Growth
KW  - Economic Theory and Research
KW  - Economies
KW  - Economy
KW  - Emerging Markets
KW  - Equilibrium
KW  - Equilibrium Level
KW  - Export Diversification
KW  - Export Growth
KW  - Finance and Financial Sector Development
KW  - Macroeconomic Management
KW  - Macroeconomics and Economic Growth
KW  - Misalignment
KW  - Overvaluation
KW  - Post Conflict Reconstruction
KW  - Poverty Reduction
KW  - Private Sector Development
KW  - Pro-Poor Growth
KW  - Real Exchange Rate
KW  - Real Exchange Rate Appreciation
KW  - Real Exchange Rate Overvaluation
KW  - Relative Price
KW  - Risks
KW  - Social Conflict and Violence
KW  - Social Development
N2  - Post-conflict countries receive substantial aid flows after the start of peace. While post-conflict countries' capacity to absorb aid (that is, the quality of their policies and institutions) is built up only gradually after the onset of peace, the evidence suggests that aid tends to peak immediately after peace is attained and decline thereafter. Aid composition broadly reflects post-conflict priorities, with large parts of aid financing social expenditure and infrastructure investment. Aid has significant short-term effects on the real exchange rate (RER), as inferred from the behavior of RER in the world. While moderate RER overvaluation is observed in post-conflicts, it cannot be traced down to the aid flows. The empirical evidence on world growth reveals new findings about the pattern of catch-up growth during post-conflicts and the role of key growth determinants on post-conflict growth. Aid is an important determinant of growth, both generally and more strongly during post-conflict periods. Because RER misalignment reduces growth, RER overvaluation during post-conflicts reduces catch-up growth. Aid and RER overvaluation combined also lower growth. But the negative growth effect of RER overvaluation declines with financial development
UR  - http://elibrary.worldbank.org/doi/book/10.1596/1813-9450-4187
ER  -