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Aid to agriculture, trade and structural change

Alessandra Pelloni (), Thanasis Stengos () and Ilaria Tedesco ()

Metroeconomica, 2020, vol. 71, issue 2, 345-368

Abstract: This paper studies the effect on the industrialization process of developing countries of foreign aid given to agriculture to expand its productive capacity. According to our theoretical analysis, this effect is conditional on the openness of receiving countries. Our empirical results based on panel data for developing countries confirm this analysis, as we find that the effect of this kind of agricultural aid on the rate of growth of the industrial sector of landlocked countries is indeed positive.

Date: 2020
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Handle: RePEc:bla:metroe:v:71:y:2020:i:2:p:345-368