{
  "title": "Grants, Remittances, and the Equilibrium Real Exchange Rate in Sub-Saharan African Countries",
  "publication": "IMF Working Papers, April 1, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/grants-remittances-and-the-equilibrium-real-exchange-rate-in-sub-saharan-african-countries-22836",
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  "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.",
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    {
      "heading": "Methodology",
      "content": "- Builds on the methodology developed by Chudik and Mongardini (2007).\n- Uses panel techniques to estimate the relationship between grants and remittances and the equilibrium real exchange rate in Sub-Saharan African (SSA) countries."
    },
    {
      "heading": "Main findings",
      "content": "- Grants and remittances are not associated, in the long run, with an appreciation of the real effective exchange rate in SSA.\n- Grants and remittances are therefore not likely to give rise to Dutch disease effects."
    },
    {
      "heading": "Interpretation and policy implications",
      "content": "- 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.\n- Implication: inflows from grants and remittances need not be presumed to have adverse real exchange rate appreciation effects that harm tradable sectors in SSA.\n\n---\n\n Content in this bundle\n\n- wp0975\n  - wp0975 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0975 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/grants-remittances-and-the-equilibrium-real-exchange-rate-in-sub-saharan-african-countries-22836"
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    "Authors: Joannes Mongardini, Brett Rayner",
    "Published: April 1, 2009",
    "Series: IMF Working Papers",
    "Builds on the methodology developed by Chudik and Mongardini (2007).",
    "Uses panel techniques to estimate the relationship between grants and remittances and the equilibrium real exchange rate in Sub-Saharan African (SSA) countries.",
    "Grants and remittances are not associated, in the long run, with an appreciation of the real effective exchange rate in SSA.",
    "Grants and remittances are therefore not likely to give rise to Dutch disease effects.",
    "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.",
    "Implication: inflows from grants and remittances need not be presumed to have adverse real exchange rate appreciation effects that harm tradable sectors in SSA.",
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