Foreign aid, exchange rate regime, and agricultural trade

IF 3.3 2区 经济学 Q2 AGRICULTURAL ECONOMICS & POLICY
Kyunghun Kim, Sunghun Lim
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引用次数: 0

Abstract

The least developed agrarian countries often face an ironic situation where well‐intentioned foreign aid adversely influences their economies. This study explores the unintended consequences of official development assistance (ODA) from donor countries on agricultural exports from recipient countries by appreciating their domestic exchange rates. Motivated by the fact that ODA accounts for a larger share of their total GDP, we first examine whether ODA inflows increase the real effective exchange rate of the recipient country. Leveraging data from 47 countries over the period 2001–2018, we find that ODA inflows lead to real exchange rate appreciation, particularly in recipient countries with floating exchange rate regimes that are more susceptible to exchange rate fluctuations. Moreover, our results reveal that ODA inflows decrease agricultural exports in low‐income agrarian economies adopting floating exchange rate regimes. By taking a unique perspective of ODA as an inflow of foreign capital, this study highlights the importance of understanding the exchange rate regime and agricultural trade of the agrarian economy when providing international aid.
外援、汇率制度和农产品贸易
最不发达的农业国往往面临一种具有讽刺意味的情况,即善意的外国援助会对其经济产生不利影响。本研究探讨了捐助国的官方发展援助(ODA)通过使受援国的国内汇率升值而对受援国的农产品出口造成的意外后果。由于官方发展援助在受援国国内生产总值中所占份额较大,我们首先研究了官方发展援助的流入是否会提高受援国的实际有效汇率。利用 2001-2018 年间 47 个国家的数据,我们发现官方发展援助的流入会导致实际汇率升值,尤其是在实行浮动汇率制的受援国,因为这些国家更容易受到汇率波动的影响。此外,我们的研究结果表明,在采用浮动汇率制的低收入农业经济体中,官方发展援助的流入会减少农业出口。通过将官方发展援助作为外资流入的一个独特视角,本研究强调了在提供国际援助时了解农业经济体的汇率制度和农业贸易的重要性。
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来源期刊
Applied Economic Perspectives and Policy
Applied Economic Perspectives and Policy AGRICULTURAL ECONOMICS & POLICY-
CiteScore
10.70
自引率
6.90%
发文量
117
审稿时长
>12 weeks
期刊介绍: Applied Economic Perspectives and Policy provides a forum to address contemporary and emerging policy issues within an economic framework that informs the decision-making and policy-making community. AEPP welcomes submissions related to the economics of public policy themes associated with agriculture; animal, plant, and human health; energy; environment; food and consumer behavior; international development; natural hazards; natural resources; population and migration; and regional and rural development.
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