Competition for aid and trade policy

Lahiri, S. & Raimondos-Møller, Pascalis (1997) Competition for aid and trade policy. Journal of International Economics, 43(3-4), pp. 369-385.

View at publisher


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 maximize the sum of the welfare of the two recipient countries, the result is just the opposite. Finally, we analyze the situation where the recipient countries compete with each other for the given amount of aid. It is shown that this competition tends to lower the level of optimal tariffs in the recipient countries.

Impact and interest:

20 citations in Scopus
Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 94013
Item Type: Journal Article
Refereed: Yes
ISSN: 0022-1996
Copyright Owner: Copyright 1997 Elsevier BV
Deposited On: 22 Mar 2016 04:50
Last Modified: 22 Mar 2016 04:51

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page