Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/45147
Authors: 
Djajić, Slobodan
Year of Publication: 
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

Files in This Item:
File
Size
155.64 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.