On the Substitutability Between Foreign Aid and International Credit

We examine the effect of relaxing a binding borrowing constraint for a recipient country on the amount of foreign aid it receives. We do so by developing a two-country, two-period trade-theoretic model. The relaxation of the borrowing constraint reduces the flow of foreign aid, suggesting that the donor views developing nations' access to international credit markets as a substitute for foreign aid

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Year of publication:	2012
Authors:	Bandyopadhyay, Subhayu
Other Persons:	Lahiri, Sajal (contributor) ; Younas, Javed (contributor)
Publisher:	[2012]: [S.l.] : SSRN
Subject:	Entwicklungshilfe \| Development aid \| Internationaler Kredit \| International credit \| Theorie \| Theory

Extent:	1 Online-Ressource (9 p)
Series:	FRB of St. Louis Working Paper ; No. 2012-043A
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 5, 2012 erstellt
Other identifiers:	10.2139/ssrn.2166049 [DOI]
Classification:	F35 - Foreign Aid ; O10 - Economic Development. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013098939