Optimal foreign aid and tariffs

doi:10.1016/S0304-3878(01)00178-X

2002-02-01

DOI：10.1016/S0304-3878(01)00178-X

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摘要

En 中文

This paper investigates the optimal choice of foreign aid when trade policies are decided in a non-cooperative fashion. Three alternative scenarios, depending on the timing of the actions and on whether aid is tied, are analyzed. It is shown that, in the case where aid is decided before tariffs, untied aid can lead to the reduction of the recipient's optimal trade tax. When the donor can tic the aid to a reduction in the recipient's tariff, the optimal aid level is always positive and the world can always achieve a Pareto-efficient equilibrium. (C) 2002 Published by Elsevier Science B.V.

Keyword:

Nash tariffs

foreign aid

tied aid

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期刊

Journal of Development Economics

IF:

4.6

论文数:

4.0K

被引数:

1.6W

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