The Aid and Trade Provision as Strategic Trade Policy

Oliver Morrissey

Chapter 7 in Conflict and Change in the 1990s, 1993, pp 98-113 from Palgrave Macmillan

Abstract: Abstract A variety of arguments can be put forward as to why rich countries should aid poorer countries, although the case for aid, moral, economic or otherwise, is by no means universally accepted (see Riddell, 1987). Moral and ethical arguments can demonstrate why aid should be granted (Dower, 1990) but do not explain why the aid that is granted takes the form it does. An examination of the lobbying activities of business representative bodies explains some of the trends in UK aid policy over the last decade (Morrissey, 1990a) but they have only limited influence on a government that does not share all their views. Economic arguments and/or beliefs about economic policy can also have a major influence on the form of aid. In this chapter we examine one element of the UK aid budget, the Aid and Trade Provision, to assess if it meets the economic criteria which, in principle, justify it. Thus we examine the arguments that ‘explain’ aid of this form, and ask if they bear close scrutiny.

Keywords: Foreign Firm; Domestic Firm; Domestic Industry; Export Subsidy; External Economy (search for similar items in EconPapers)
Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-12728-3_7

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DOI: 10.1007/978-1-349-12728-3_7

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