Date of Award
8-1-2025
Degree Name
Master of Science
Department
Agribusiness Economics
First Advisor
MOON, WANKI
Abstract
This study explores the impact of foreign agricultural aid on agricultural productivity and its subsequent effects on exchange rates, addressing a gap in the existing literature. While several studies have analyzed the effects of agricultural aid on productivity and poverty alleviation (e.g., Clemens et al., 2012; Rajan & Subramanian, 2005), the economic consequences of this aid on exchange rates have not been comprehensively examined. This research contributes to the literature by assessing both the direct and indirect effects of agricultural aid. The findings indicate that foreign aid has a statistically significant positive impact on agricultural productivity, with a $1 increase in aid corresponding to a 0.11% increase in productivity. However, the study also reveals that while foreign aid influences agricultural productivity, it has a negative, statistically insignificant impact on the exchange rate. These results suggest that while agricultural aid boosts productivity, its effect on exchange rate dynamics is limited and not statistically significant. This research provides valuable insights into the complex relationship between foreign aid, agricultural productivity, and exchange rate movements. The study also recommends that for aid to truly benefit recipient countries, it must be carefully targeted and allocated in ways that drive lasting improvements in the agricultural sector and overall economic stability.
Access
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