Author : Trisha Bezmen
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)
Book Synopsis Foreign Aid Under Quantitative Restrictions by : Trisha Bezmen
Download or read book Foreign Aid Under Quantitative Restrictions written by Trisha Bezmen and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a two-country, general-equilibrium model of international trade, this paper incorporates pre-existing quantitative trade restrictions and international factor mobility into the transfer problem analysis. The effects of foreign aid on the welfare of both the donor and recipient nations are identified under each form of quantitative trade restriction: quotas and voluntary export restraints (VERs). In doing so, this paper identifies conditions under which international transfers are strictly Pareto-improving (i.e. increase global welfare). A central result of this analysis is the direct welfare effect of a transfer received by a nation with quota-constrained (VER-constrained) imports is enhanced (may be enhanced) by a worsening of the recipients terms of trade.