| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 7351660 | European Economic Review | 2018 | 18 Pages |
Abstract
We adopt a disaggregate approach to study the link between aid and Dutch Disease dynamics, using a natural experiment in China. Specifically, we examine whether post-disaster aid provided to a subsample of Chinese counties, devastated by an earthquake in 2008, affects the sectoral composition of local economies. Using different methods we consistently find that counties receiving (more) aid - even “nearby counties” not directly damaged by the earthquake - tend to suffer from a contraction of the manufacturing sector. Innovative features of the paper include its regional perspective; its identification strategy (resting on a special provision in Chinese policy-pairwise aid); and its focus on Dutch disease effects in the context of post-disaster aid.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Erwin Bulte, Xu Lihe, Zhang Xiaobo,