Chapter 3 Agglomeration and Aid

Steven Brakman, Harry Garretsen and Charles Marrewijk

A chapter in Theory and Practice of Foreign Aid, 2006, pp 31-53 from Emerald Group Publishing Limited

Abstract: We combine a key issue in development economics (explaining core-periphery patterns) for the first time with an analysis of unilateral transfers (foreign aid) using a New Economic Geography model. We show that (i) direct transfer paradoxes are not possible in a symmetric setting even if a bystander is present, (ii) the effects of foreign aid depend on the level of economic integration, (iii) aid only has a temporary effect (even if there is a bystander present) if the initial equilibrium is stable, and (iv) the recipient as well as the bystander benefits from foreign aid if the donor is large.

Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.101 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
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:eme:fegzzz:s1574-8715(06)01003-7

DOI: 10.1016/S1574-8715(06)01003-7

Access Statistics for this chapter

More chapters in Frontiers of Economics and Globalization from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().