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Periodical article | Leiden University catalogue | WorldCat |
Title: | Foreign Aid and Economic Performance in Tanzania |
Author: | Nyoni, Timothy S. |
Year: | 1998 |
Periodical: | World Development |
Volume: | 26 |
Issue: | 7 |
Period: | July |
Pages: | 1235-1240 |
Language: | English |
Geographic term: | Tanzania |
Subjects: | exchange rates development cooperation Development and Technology Economics and Trade international relations |
External link: | https://doi.org/10.1016/S0305-750X(98)00047-3 |
Abstract: | This study examines the relationship between foreign aid inflows into Tanzania and some macroeconomic variables such as the real exchange rate, export performance, manufacturing production, and growth, and assesses the potential for the aid-induced Dutch disease in Tanzania. Using cointegration technique and an error-correction model, the study shows that aid inflows, increased openness of the economy and devaluation of the local currency caused real depreciation while increased government expenditure caused real appreciation. The finding that aid inflows caused real depreciation in Tanzania refutes the proposition that foreign aid has caused Dutch disease in the country. Tanzania may thus continue receiving aid and use it for productive investment to stimulate a positive supply response. Bibliogr. |