This paper presents an overview of the economics of international aid, highlighting the historical literature and the contemporary debates. It reviews the "trade-theoretic" and the "contract-theoretic" analytical literature, and the empirical and institutional literature. It demonstrates a great degree of continuity in the policy concerns of the aid discourse in the twentieth century, and shows how the theoretical, empirical and institutional literature has evolved to address specific policy concerns of each period.
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ReDIF This chapter was published in: S. Kolm & Jean Mercier Ythier (ed.) , Elsevier, chapter 26, pages 1559-1588, 2006.
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