This paper examines the absorption of foreign aid in the presence of formal and informal production. Calibrating a two-sector open economy model to 67 aid-recipient countries for 1990–2019, we show that an increase in foreign aid drives resources into the informal sector, and away from the formal sector. With untied aid, the expansion of the informal sector can lead to an economic contraction through the Dutch Disease effect. An economic expansion with an increase in the share of formal production can be attained by re-allocating existing aid to public investment rather than an increase in the aggregate level of aid.

中文翻译：

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外援、公共投资和非正规经济

本文考察了在正式和非正式生产存在的情况下对外国援助的吸收。我们将 1990 年至 2019 年间针对 67 个受援国的两部门开放经济模型进行校准，结果表明，外援的增加将资源推向非正规部门，并远离正规部门。在不附带条件的援助下，非正规部门的扩张可能会通过荷兰病效应导致经济收缩。通过将现有援助重新分配给公共投资而不是增加援助总量，可以实现经济扩张并增加正规生产的份额。