TY - JOUR
T1 - Aid for trade, infrastructure, and growth
AU - Naito, Takumi
N1 - Funding Information:
Acknowledgements I am grateful to the editor-in-chief Eckhard Janeba and two anonymous referees for their helpful comments and suggestions. I also appreciate IR/PS, UCSD for great research environment, and JSPS Postdoctoral Fellowship for Research Abroad and KAKENHI #22730190 for financial support. All remaining errors are mine.
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2013/12
Y1 - 2013/12
N2 - 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.
AB - 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.
KW - Aid for trade
KW - Endogenous growth
KW - Public infrastructure
KW - Stolper-Samuelson theorem
KW - Transfer paradox
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U2 - 10.1007/s10797-012-9249-5
DO - 10.1007/s10797-012-9249-5
M3 - Article
AN - SCOPUS:84890439961
SN - 0927-5940
VL - 20
SP - 886
EP - 909
JO - International Tax and Public Finance
JF - International Tax and Public Finance
IS - 6
ER -
