Foreign aid, infrastructure development and welfare: an intertemporal analysis

The author 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 consumption in period one, 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.


Publication year:
2009
In:
In: Review of development economics. - Oxford. - Vol. 13(2009), no. 3, p. 393-402

Note: The status of this file is: restricted


 Record created 2011-07-21, last modified 2019-09-30

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