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Aid and Dutch Disease: Evidence from Moroccan and Tunisian Time-Series Data

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  • Tony Addison
  • Mina Baliamoune-Lutz

Abstract

We examine aid-induced Dutch Disease—after controlling for the effects of remittances and FDI flows—in the context of two North African countries, Morocco and Tunisia. We do so by performing a multivariate time series analysis of aggregated annual data over the period 1980-2009. Aid causes real exchange rate appreciation in the case of Morocco, especially in the long run, but has no effect on the real exchange rate in the case of Tunisia.

Suggested Citation

  • Tony Addison & Mina Baliamoune-Lutz, 2013. "Aid and Dutch Disease: Evidence from Moroccan and Tunisian Time-Series Data," WIDER Working Paper Series wp-2013-132, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2013-132
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    File URL: https://www.wider.unu.edu/sites/default/files/WP2013-132.pdf
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    References listed on IDEAS

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    Cited by:

    1. Tony Addison & Finn Tarp, 2015. "Lessons for Japanese foreign aid from research on aid's impact," WIDER Working Paper Series 058, World Institute for Development Economic Research (UNU-WIDER).
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    4. Tony Addison & Finn Tarp, 2015. "Lessons for Japanese Foreign Aid from Research on Aid's Impact," WIDER Working Paper Series wp-2015-058, World Institute for Development Economic Research (UNU-WIDER).

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