Grants, Remittances, and the Equilibrium Real Exchange Rate in Sub-Saharan African Countries

Author/Editor:

Joannes Mongardini ; Brett Rayner

Publication Date:

April 1, 2009

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper builds on the methodology developed by Chudik and Mongardini (2007) to estimate the relationship between grants and remittances and the equilibrium real exchange rate in Sub-Saharan African (SSA) countries using panel techniques. The results indicate that grants and remittances are not associated, in the long run, with an appreciation of the real effective exchange in SSA and are therefore not likely to give rise to Dutch disease effects. These findings suggest that grants and remittances may be serving to ease supply constraints or boost productivity in the non-tradable sector in the recipient economies.

Series:

Working Paper No. 09/75

Subject:

English

Publication Date:

April 1, 2009

ISBN/ISSN:

9781451872224/1018-5941

Stock No:

WPIEA2009075

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

27

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