Chapter 9 A Pareto-Improving Foreign Aid in a Dynamic North–South Model

Abstract

Constructing a simple dynamic North–South model in which factors of production are internationally immobile and there is no international credit market, it is possible that a persistent and unilateral foreign aid makes both North and South better off. We also show that the Pareto-improving transfer involves local indeterminacy.

Citation

Shimomura, K. (2006), "Chapter 9 A Pareto-Improving Foreign Aid in a Dynamic North–South Model", Lahiri, S. (Ed.) Theory and Practice of Foreign Aid (Frontiers of Economics and Globalization, Vol. 1), Emerald Group Publishing Limited, Leeds, pp. 131-153. https://doi.org/10.1016/S1574-8715(06)01009-8