Foreign Aid Reduces Labor Supply and Capital Accumulation
In 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.
|Date of creation:||2001|
|Date of revision:|
|Publication status:||Published in Review of Development Economics, Volume 5, Issue 1, pages 105¨C118, February 2001|
|Contact details of provider:|| Web page: http://cema.cufe.edu.cn/|
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