Kruse, Hendrik W.; Martínez‐Zarzoso, Inmaculada - In: Canadian Journal of Economics/Revue canadienne d'économique 54 (2021) 1, pp. 410-442
This study integrates development aid into a theoretically founded structural gravity model that considers primary and secondary effects of aid as an income transfer and as a bilateral trade cost determinant. We identify the parameters of our model using a two-stage approach that includes a...