WELFARE EFFECTS OF AID UNDER QUANTITATIVE TRADE RESTRICTIONS

• 成果类型: Article
• 署名作者: LAHIRI, S; RAIMONDOS, P
• 署名单位: Copenhagen Business School
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(95)01374-2
• 发表日期: 1995
• 页码: 297-315
• 关键词: TIED-AID; Quotas; welfare

摘要

The paper examines the effects of tied-aid on the welfare of both the donor and the recipient countries. We depart from the previous literature by assuming preexistence 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, we show that whereas untied aid cannot increase global welfare, tied-aid unambiguously does so.