Chapter 4 Does Foreign Aid Impede Foreign Investment?

Hamid Beladi and Reza Oladi

A chapter in Theory and Practice of Foreign Aid, 2006, pp 55-63 from Emerald Group Publishing Limited

Abstract: This paper investigates the impact of foreign aid on foreign investment when foreign aid is used to finance a public consumption good. By formulating and analyzing a three-good general equilibrium model, we show that such foreign aid could crowd out foreign investment, given a factor intensity condition.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:eme:fegzzz:s1574-8715(06)01004-9

DOI: 10.1016/S1574-8715(06)01004-9

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