On the tying of aid to tariff reform


Autoria(s): Lahiri, Sajal; Raimondos-Møller, Pascalis
Data(s)

01/12/1997

Resumo

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.

Identificador

http://eprints.qut.edu.au/94028/

Publicador

Elsevier BV

Relação

DOI:10.1016/S0304-3878(97)80001-6

Lahiri, Sajal & Raimondos-Møller, Pascalis (1997) On the tying of aid to tariff reform. Journal of Development Economics, 54(2), pp. 479-491.

Direitos

Copyright 1997 Elsevier Science B.V.

Fonte

QUT Business School; School of Economics & Finance

Palavras-Chave #Tariffs; Tied-aid; Welfare
Tipo

Journal Article