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Title:Foreign aid, infrastructure development and welfare: An intertemporal analysis PDF Logo
Authors:Djajić, Slobodan
Issue Date:2008
Series/Report no.:Research paper / UNU-WIDER 2008.64
Abstract:This paper examines the welfare implications of foreign aid within the framework of a two-period, two-country model of international trade. It is up to the donor country to decide what fraction of any given aid package is to be made available for the recipient's immediate, period-one consumption, and what part should be allocated for investment in infrastructure that expands the recipient's production possibilities in period two. The focus of the analysis is on the conditions under which both countries agree or disagree on the manner in which the aid funds should be divided between the two options.
Subjects:foreign aid
trade
model
welfare
JEL:F35
H41
ISBN:978-92-9230-114-9
Document Type:Working Paper
Appears in Collections:WIDER Research Papers, United Nations University (UNU)

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