Foreign aid, tariffs and nontraded private or public goods

The Coherence of Trade Flows and Trade Policies with Aid and Investment Flows

“…They present empirical evidence suggesting that their non-traded-good effect appears as more important than the standard Johnson effect in generating the possibility of welfare-worsening impacts of foreign aid on small, open economies. Schweinberger (2002) extends their analysis by showing how different assumptions about the mobility or immobility of factors across industries affect the sign and magnitude of both effects. This channel for potentially harmful effects of tied aid on trade flows and welfare contrasts with the usual "Dutch disease" effect and real appreciation of the exchange rate generally mentioned in the macro literature.…”

“…Again, changes in the terms of trade between donor and recipient open the possibility of an effect on trade flows and the transfer paradox (Hatzipanayotou and Michael, 1995) 6 . Schweinberger (2002) considers the effect of foreign aid in an economy with a public good whose labour costs are financed by a tariff levied on a private importable good. Two interrelated distortions are present in such an economy.…”

The short and long run effects of tied foreign aid on pollution abatement, pollution and employment: A pilot model

“…It represents, of course, only a sufficient condition but it highlights that an increase in K raises (ceteris paribus) the marginal value product of labour used in production as well as in pollution abatement. Whether emissions rise or fall depends upon the relative increases in L P and L. The first term in expression (19) shows that L P will rise by relatively less if the production function is more concave. The interpretation of the second term in expression (19) is less obvious.…”

“…It is widely accepted that many forms of foreign aid (both public and private) are tied to certain conditions and one generally distinguishes between three different types of tying [5]. First, aid may be tied to the consumption of certain goods [10,13,14,18,19].…”

A computable general equilibrium analysis of export taxes in the Australian wool industry

“…The use of the specific factors approach to examine differences between long and short run is not uncommon in the literature (see Mayer, 1974, Mussa, 1974and Schweinberger, 2002. Indeed, there is a growing body of empirical evidence to indicate the importance of specific factors (e.g., Magee, 1980, Grossman and Levinsohn, 1989and Hiscox, 2002.…”