Aid for trade and welfare

研究成果: Article査読

2 被引用数 (Scopus)

抄録

A new foreign aid initiative called Aid for Trade is intended to improve a recipient's trade-related infrastructure which lowers its trade costs. We formulate a two-country, continuum-good Ricardian model, where each country's transport cost is inversely related to its effective public services which are subject to congestion. Our numerical experiments show that an increase in the donor's aid/GDP ratio within a certain range raises welfare in both countries if the recipient's relative income tax rate is sufficiently small.

本文言語English
ページ(範囲)216-231
ページ数16
ジャーナルJapanese Economic Review
63
2
DOI
出版ステータスPublished - 2012 6

ASJC Scopus subject areas

  • 経済学、計量経済学

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