On the tying of aid to tariff reform

• 成果类型: Article
• 署名作者: Lahiri, S; Raimondos-Moller, P
• 署名单位: University of Essex; Copenhagen Business School
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/S0304-3878(97)80001-6
• 发表日期: 1997
• 页码: 479-491
• 关键词: tariffs; tied-aid; welfare

摘要

This paper considers the welfare effects of foreign aid that is tied to changes in the recipient's tariff. By constructing a three-country model with tariffs, and by allowing for changes both in the amount of aid and in the tariff rates, we are able to consider the welfare implications of two different rules of aid conditionality: (i) a rule which leaves the donor's welfare unchanged, and (ii) a rule which leaves the recipient government's total revenue unchanged. It is shown that the tying of aid to a tariff reform can, inter alia, be used to ensure Pareto improvement. (C) 1997 Elsevier Science B.V.