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dc.contributor.authorBrakman, Stevenen_US
dc.contributor.authorGarretsen, Harryen_US
dc.contributor.authorvan Marrewijk, Charlesen_US
dc.date.accessioned2006-09-05en_US
dc.date.accessioned2009-07-28T08:12:14Z-
dc.date.available2009-07-28T08:12:14Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/25795-
dc.description.abstractA key issue in development economics is the explanation of core-periphery patterns around the world. Combining this issue with that of analyzing unilateral transfers (e.g. foreign aid) points in the direction of the use of New Economic Geography (NEG) models which, so far, has not been done explicitly. This paper tries to fill this gap in the literature by studying the (possibly ‘catastrophic’) effects of aid around the so-called break-points and sustain-points in a NEG model. We also analyze the effects of a “bystander”, that is a country which is not directly involved in the transfer. In the traditional transfer literature a bystander is known to potentially cause transfer paradoxes. Our findings in this NEG setting are as follows. First, direct transfer paradoxes are not possible in a symmetric setting even if a bystander is present. Second, the effects of foreign aid depend on the level of economic integration between donor and recipient. Third, if the equilibrium from which aid is given is stable, aid only has a temporary effect (even if there is a bystander present). Fourth, if the donor is relatively large, not only the recipient but also the bystander benefits from foreign aid.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 1750en_US
dc.subject.jelF12en_US
dc.subject.jelF35en_US
dc.subject.ddc330en_US
dc.subject.stwInternationaler Transferen_US
dc.subject.stwEntwicklungshilfeen_US
dc.subject.stwAgglomerationseffekten_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwNeue ökonomische Geographieen_US
dc.subject.stwEntwicklungstheorieen_US
dc.subject.stwTheorieen_US
dc.titleAgglomeration and aiden_US
dc.typeWorking Paperen_US
dc.identifier.ppn517006359en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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