Description

This paper explores the role of foreign aid and remittance inflows in the mitigation of the effects of food price shocks. Using a large sample of developing countries and mobilising dynamic panel data specifications, the econometric results yield two important findings. First, remittance and aid inflows significantly dampen the effect of food price shocks in the most vulnerable countries. Second, a lower remittance-to-GDP ratio is required in order to fully absorb the effects of food price shocks compared to the corresponding aid-to-GDP ratio.

Taxonomy

Development assistance , Economic development , International financial system , Remittances

More publications in this series: Working Papers

More publications by: Jean-Louis Combes ; Christian H Ebeke ; Mireille Ntsama Etoundi ; Thierry Yogo