Cheng, Wenli; Zhang, Dingsheng; Zou, Heng-fu - In: Annals of Economics and Finance 9 (2008) 2, pp. 223-237
This paper develops a model to study the effects of foreign aid on the creation and distribution of wealth in the recipient country. It considers three types of foreign aid: permanent grants to all individuals, temporary grants to uneducated workers, and foreign aid in the form of low interest...