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Should Easier Access to Credit Replace Foreign Aid? A Trade-theoretic Analysis

Subhayu Bandyopadhyay (), Sajal Lahiri and Javed Younas ()
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Javed Younas: American University of Sharjah

Economics Bulletin, 2013, vol. 33, issue 3, 2320-2327

Abstract: We develop a two-period trade-theoretic model for a recipient country with credit constraints and develop a necessary and sufficient condition for replacing foreign aid by credit to be welfare improving.

Keywords: Foreign aid; borrowing constraint; welfare; fungibility; public input. (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2013-09-11
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