Using a sample of 124 countries assisted by China from 2000 to 2019, this paper examines the impact of foreign aid on outward foreign direct investment (OFDI) and the mitigation mechanism of risk. The research finds that, first, foreign aid can significantly reduce the country risk of recipient...

This paper studies how the interaction between two types of uncertainty due to ignorance affects strategic consumption-portfolio rules, precautionary savings, and welfare in general equilibrium. We incorporate these two types of uncertainties into a recursive utility version of a canonical...