It has been argued that if several developing countries expand exports, they are likely to experience a decline in their terms of trade, export revenues, and real incomes. The general case for this export pessimism has lost much of its force, but remains very much alive for some specific...

The recent increase in aid to Africa, alongside increases in special-purpose aid, has revived interest in the question of the fungibility of aid – the notion that, if a donor gives aid for a project that the recipient government would have undertaken anyway, then the aid is financing some...