TIED AND UNTIED FOREIGN AID: A THEORETICAL AND EMPIRICAL ANALYSIS

Christopher F. Baum

36 citations0/0 files storedInstitutional Repositories DataBase (IRDB)

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

International Development and Aid International Relations and Foreign Policy Global trade and economics

Abstract

This paper develops a model of foreign assistance where untied aid generates goodwill for a donor in a recipient country, thereby enhancing exports of the donor.Using an intertemporal maximizing model, we identify the optimal adjustment paths for tied and untied aid and the parameters upon which they depend.Estimates of these parameters are obtained from data on aid from seventeen OECD countries over the period [1972][1973][1974][1975][1976][1977][1978][1979][1980][1981][1982][1983][1984][1985][1986][1987][1988][1989][1990].Results suggest that donor countries maintain a constant flow of untied aid in order to continually replenish the stock of goodwill, while adjusting the flow of tied aid over time.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 36 citations exist upstream.

Cited by

2014Does Aid Promote Donor Exports? Commercial Interest versus Instrumental Philanthropy 2000A causality analysis of untied foreign assistance and export performance: the case of Germany 2001Are there biases in German bilateral aid allocations 2005Donor Influence in MDBs: the Case of the Asian Development Bank 2014Competition for Export Markets and the Allocation of Foreign Aid: The Role of Spatial Dependence among Donor Countries 2020How different aid flows affect different trade flows: Evidence from Africa and its largest donors 2019Effects of Foreign Aid on Income through International Trade 2013Procurement of goods and services by international organisations in donor countries

Imported from OpenAlex (CC0) — nothing here is generated.