IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v2y1998i1p61-75.html
   My bibliography  Save this article

Tied to Capital or Untied Foreign Aid?

Author

Listed:
  • Michael S. Michael
  • Charles Van Marrewijk

Abstract

A two‐country trade model of foreign aid is developed. The aid‐receiving country suffers from Harris‐Todaro type unemployment. Aid is either untied, tied to sector‐specific capital, or tied to intersectorally mobile capital. These types of aid are compared by examining their terms‐of‐trade and welfare effects to show that (i) welfare paradoxes are possible, (ii) the world as a whole may gain from aid, (iii) a conflict of interest concerning the type of aid may arise between donor and recipient, and (iv) under plausible conditions untied aid is better for the recipient and the world.

Suggested Citation

  • Michael S. Michael & Charles Van Marrewijk, 1998. "Tied to Capital or Untied Foreign Aid?," Review of Development Economics, Wiley Blackwell, vol. 2(1), pages 61-75, February.
    • Handle: RePEc:bla:rdevec:v:2:y:1998:i:1:p:61-75
    DOI: 10.1111/1467-9361.00028
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9361.00028
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9361.00028?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:ebl:ecbull:v:6:y:2007:i:5:p:1-8 is not listed on IDEAS
    2. Steven Brakman & Harry Garretsen & Charles van Marrewijk & Charles van Marrewijk, 2006. "Agglomeration and Aid," CESifo Working Paper Series 1750, CESifo.
    3. Chao, Chi-Chur & Yu, Eden S. H., 1999. "Shadow prices and trade restrictions in a monetary economy," Journal of Macroeconomics, Elsevier, vol. 21(4), pages 755-764.
    4. Muneyuki Saito & Yasuyuki Sugiyama, 2007. "Transfer of Pollution Abatement Technology and Unemployment," Economics Bulletin, AccessEcon, vol. 6(5), pages 1-8.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:2:y:1998:i:1:p:61-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.