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International Trade and Economic Development$
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Rajat Acharyya and Saibal Kar

Print publication date: 2014

Print ISBN-13: 9780199672851

Published to Oxford Scholarship Online: September 2014

DOI: 10.1093/acprof:oso/9780199672851.001.0001

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Trade, Foreign Aid, and Welfare

Trade, Foreign Aid, and Welfare

(p.146) 7 Trade, Foreign Aid, and Welfare
International Trade and Economic Development

Rajat Acharyya

Saibal Kar

Oxford University Press

The study of international income transfers has received a great deal of attention in the theory of international trade. This chapter offers a survey of some of the influential pieces on foreign aid including what is here considered as important analytical framework capable of inciting further research on trade-aid interactions. It also deals with various developments in theory, and empirics of foreign aid. In the process rich analytical contributions are used, as per relevance to the matter at hand, to offer a strong analytical discussion on the entrenched relations between foreign aid and development. For developing countries, the questions regarding foreign aid and governance offer an interesting extension and the subject of research, which this chapter also highlights.

Keywords:   foreign aid, immiserizing transfers, paradoxes, welfare, tied aid, governance

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