Foreign Aid Reduces Labor Supply and Capital Accumulation
AbstractIn an optimal growth model with foreign aid, foreign borrowing, and endogenous leisure-and-consumption choices, it is shown that a permanent rise in foreign aid reduces long-run capital accumulation and labor supply, increases long-run consumption, and has no effect on long-run foreign borrowing.
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Bibliographic InfoPaper provided by China Economics and Management Academy, Central University of Finance and Economics in its series CEMA Working Papers with number 56.
Date of creation: 2001
Date of revision:
Publication status: Published in Review of Development Economics, Volume 5, Issue 1, pages 105¨C118, February 2001
Other versions of this item:
- Gong, Liutang & Zou, Heng-fu, 2001. "Foreign Aid Reduces Labor Supply and Capital Accumulation," Review of Development Economics, Wiley Blackwell, vol. 5(1), pages 105-18, February.
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