Foreign aid, tariffs and nontraded private or public goods

The possibility of transfer paradoxes or immiserizing growth in tariff ridden, small, open, developing countries with a nontraded goods sector is analysed in four models: a (short-run) sector-specific factor model, a dual economy model (capital is mobile between some but not all sectors), a long-run...

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Bibliographic Details
Published in:Journal of development economics 2002-10, Vol.69 (1), p.255-275
Main Author: Schweinberger, A.G.
Format: Article
Language:English
Subjects:
Capital mobility
Developing countries
Development economics
Development studies
Dual economies
Economic models
Economic theory
Foreign aid
LDCs
Nontraded goods
Private goods
Public goods
Studies
Tariffs
Tied aid
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Summary:The possibility of transfer paradoxes or immiserizing growth in tariff ridden, small, open, developing countries with a nontraded goods sector is analysed in four models: a (short-run) sector-specific factor model, a dual economy model (capital is mobile between some but not all sectors), a long-run model (factors are mobile between all sectors) and a model with public goods. Several results of the received literature on transfer paradoxes and/or immiserizing growth in distorted small open economies are generalized to nontraded private and public goods (allowing for intersectoral factor mobility or immobility).
ISSN:0304-3878
1872-6089
DOI:10.1016/S0304-3878(02)00061-5