01877cas a2200265 a 4500 AALejournalIMF006801 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455209408 1018-5941 BD-DhAAL BD-DhAAL Dabla-Norris, Era. Business Cycle Fluctuations, Large Shocks, and Development Aid : New Evidence / Era Dabla-Norris, Camelia Minoiu, Luis-Felipe Zanna. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (39 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We examine the cyclical properties of development aid using bilateral data for 22 donors and over 100 recipients during 1970?2005. We find that bilateral aid flows are on average procyclical with respect to business cycles in donor and recipient countries. However, they become countercyclical when recipient countries face large adverse shocks to the terms-of-trade or growth collapses-thus playing an important cushioning role. Aid outlays contract sharply during severe donor economic downturns; this effect is magnified by higher public debt levels. Additionally, bilateral aid flows are higher in the presence of IMF programs and are more countercyclical for recipient countries with stronger institutions. Mode of access: Internet Minoiu, Camelia. Zanna, Luis-Felipe. IMF Working Papers; Working Paper ; No. 2010/240 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/240/001.2010.issue-240-en.xml IMF e-Library