Notes on the Grants Economy of Foreign Aid

Bruce D. Fitzgerald
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Bruce D. Fitzgerald: Peace Science Department University of Pennsylvania

Conflict Management and Peace Science, 1975, vol. 1, issue 2, 131-140

Abstract: A donor may use the inducement of grants to alter the manner in which recipients' lives are lived. A general model of a discriminating donor allocating grants among a number of potential recipients is derived and used to find the behavioral implications of the foreign aid objective of minimizing arms expenditures in developing nations. It is shown that a nation will receive greater sums of aid: (a) the more compliant it is to the tastes of the donor, (b) the more restrictive the terms of the grant, and (c) the lower its income level.

Date: 1975
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Persistent link: https://EconPapers.repec.org/RePEc:sae:compsc:v:1:y:1975:i:2:p:131-140

DOI: 10.1177/073889427500100204

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