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Aid to agriculture, trade and structural change

Author

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  • Alessandra Pelloni
  • Thanasis Stengos
  • Ilaria Tedesco

Abstract

This paper studies the effect on the industrialization process of developing countries of foreign aid given to agriculture to expand its productive capacity. According to our theoretical analysis, this effect is conditional on the openness of receiving countries. Our empirical results based on panel data for developing countries confirm this analysis, as we find that the effect of this kind of agricultural aid on the rate of growth of the industrial sector of landlocked countries is indeed positive.

Suggested Citation

  • Alessandra Pelloni & Thanasis Stengos & Ilaria Tedesco, 2020. "Aid to agriculture, trade and structural change," Metroeconomica, Wiley Blackwell, vol. 71(2), pages 345-368, May.
    • Handle: RePEc:bla:metroe:v:71:y:2020:i:2:p:345-368
    DOI: 10.1111/meca.12279
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    Cited by:

    1. Haldar, Anasuya & Sethi, Narayan, 2022. "Effect of sectoral foreign aid allocation on growth and structural transformation in sub-Saharan Africa—Analysing the roles of institutional quality and human capital," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 1010-1026.
    2. Emanuele Felice & Iacopo Odoardi & Dario D’Ingiullo, 2023. "The Chinese Inland-Coastal Inequality: The Role of Human Capital and the 2007–2008 Crisis Watershed," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 761-788, July.

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