Aid, shocks, and growth / Paul Collier and Jan Dehn Collier, Paul

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Collier, Paul
Economic assistance - Developing countries.; Developing countries - Economic policy.; Prices - Developing countries.
Not surprisingly, extreme negative export price shocks reduce growth. But these adverse effects can be mitigated through offsetting increases in aid. Indeed, targeting aid to countries experiencing negative shocks appears to be even more important for aid effectiveness than targeting aid to countries with good policies.
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