search query: @indexterm Restrictive trade practices / total: 12
reference: 7 / 12
| Author: | Lahiri, S. Raimondos, P. |
| Title: | Welfare effects of aid under quantitative trade restrictions |
| Journal: | Journal of International Economics
1995 : NOV, VOL. 39:3/4, p. 297-316 |
| Index terms: | TRADE BARRIERS WELFARE RESTRICTIVE TRADE PRACTICES |
| Language: | eng |
| Abstract: | The paper examines the effects of tied-aid on the welfare of both the donor and the recipient countries. The authors depart from the previous literature by assuming pre-existence of quantitative trade distortions. To mitigate these distortions the donor country provides aid that is tied to the rationed good. Conditions for the presence of the transfer paradox and of the enrichment of both countries are derived and interpreted under the stability of the system. Furthermore, they show that whereas untied aid can not increase global welfare, tied-aid unambiguously does so. |
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