Aid and Income Stabilization

Sylviane Guillaumont Jeanneney (1) , Sampawende Jules Tapsoba (1)

1 CERDI - Centre d'Études et de Recherches sur le Développement International

This article contributes to the debate on aid volatility and argues that official assistance copes with exogenous output shocks in recipient countries and stabilizes resources available for the financing of consumption, investment and net trade. Stabilizing aid is effective in aid-dependent and vulnerable states. Aid volatility and disbursement lags are not significant determinants of the stabilizing impact of aid.

Mots clés: foreign aid; Income stabilization; developing countries

Domaines: Economies et finances

Sylviane Guillaumont Jeanneney, Sampawende Jules Tapsoba. Aid and Income Stabilization. 2011. ⟨halshs-00554289⟩