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International Transfers from Rich to Poor Nations

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  • Tan, Kim-Heng

Abstract

A major shortcoming of the theoretical literature on international transfers is that it is not at all clear whether the welfare results obtained are consistent with transfers flowing from rich to poor nations. This is because economists hardly ever model the difference in wealth between the donor and recipient nations. `This paper shows that, contrary to the literature, when international transfers are modeled explicitly to flow from rich to poor nations, donor-enriching recipient-impoverishing international transfers may not exist in a world which is accumulating capital. Copyright 1998 by Blackwell Publishing Ltd.

Suggested Citation

  • Tan, Kim-Heng, 1998. "International Transfers from Rich to Poor Nations," Review of International Economics, Wiley Blackwell, vol. 6(3), pages 461-471, August.
    • Handle: RePEc:bla:reviec:v:6:y:1998:i:3:p:461-71
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    Cited by:

    1. Cremers, Emily T. & Sen, Partha, 2008. "The transfer paradox in a one-sector overlapping generations model," Journal of Economic Dynamics and Control, Elsevier, vol. 32(6), pages 1995-2012, June.
    2. Emily T. Cremers & Partha Sen, 2005. "Transfers and the Terms of Trade in an Overlapping Generations Model," Working papers 138, Centre for Development Economics, Delhi School of Economics.
    3. Kojun Hamada & Mitsuyoshi Yanagihara, 2014. "Donor Altruism and the Transfer Paradox in an Overlapping Generations Model," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 905-922, November.
    4. Kojun Hamada & Tsuyoshi Shinozaki & Mitsuyoshi Yanagihara, 2017. "Aspirations and the transfer paradox in an overlapping generations model," Journal of Economics, Springer, vol. 122(3), pages 279-301, November.
    5. Trisha Bezmen, 2006. "Foreign Aid under Quantitative Restrictions: Welfare Effects and International Factor Mobility," Review of International Economics, Wiley Blackwell, vol. 14(4), pages 709-721, September.

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