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Author:Lahiri, S.
Raimondos-Moeller, P.
Title:Competition for aid and trade policy
Journal:Journal of International Economics
1997 : NOV, VOL. 43:3/4, p. 369-386
Index terms:ECONOMICS
COMPETITION
TRADE POLICY
Language:eng
Abstract:This paper considers the optimal allocation of a given amount of foreign aid between two recipient countries. It is shown that, given consumer preferences, a country following a more restrictive trade policy would receive a smaller share of the aid if the donor country maximises its own welfare in allocating aid. If, on the other hand, the donor country allocates aid in order to maximise the sum of the welfare of the two recipient countries, the result is just the opposite.
SCIMA record nr: 169746
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