Aid for trade, infrastructure, and growth

研究成果: Article

3 引用 (Scopus)

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Aid for trade is a new foreign aid initiative to assist recipient countries to build trade-related infrastructure. We formulate a small-country, two-good (i.e., investment and consumption goods), two-factor (i.e., capital and labor) endogenous growth model with learning by doing and intersectoral knowledge spillovers, where the import transport cost depends inversely on public infrastructure. Focusing on the case where the country is incompletely specialized and imports the investment good, we show that a permanent increase in the recipient's aid/GDP ratio raises the steady-state growth rate if and only if the investment good is more labor-intensive.

元の言語English
ページ(範囲)886-909
ページ数24
ジャーナルInternational Tax and Public Finance
20
発行部数6
DOI
出版物ステータスPublished - 2013 1 1

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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