Foreign Aid Reduces Labor Supply and Capital Accumulation

Liutang Gong and Heng-Fu Zou ()

Review of Development Economics, 2001, vol. 5, issue 1, 105-118

Abstract: In an optimal growth model with foreign aid, foreign borrowing, and endogenous leisure‐and‐consumption choices, it is shown that a permanent rise in foreign aid reduces long‐run capital accumulation and labor supply, increases long‐run consumption, and has no effect on long‐run foreign borrowing.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
https://doi.org/10.1111/1467-9361.00110

Related works:
Working Paper: Foreign Aid Reduces Labor Supply and Capital Accumulation (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:rdevec:v:5:y:2001:i:1:p:105-118

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().