We develop a two-period trade-theoretic model for a recipient country with credit constraints and develop a necessary and sufficient condition for replacing foreign aid by credit to be welfare improving.

Payne and Kumazawa (2005) examine the effect of domestic savings, foreign aid, the evolution of capital mobility over time, and openness on investment rates using a panel of sub-Saharan African countries. They find that capital mobility has increased over time and that foreign aid and openness...

Payne and Kumazawa (2005) examine the effect of domestic savings, foreign aid, the evolution of capital mobility over time, and openness on investment rates using a panel of sub-Saharan African countries. They find that capital mobility has increased over time and that foreign aid and openness...

The paper uses a Hecksher-Ohlin-Samuelson type general equilibrium framework to consider the incidence of an outsourcing tax on an economy in which the production of a specific intermediate input has been fragmented and outsourced. If the outsourced sector provides a non-traded input, the...

We construct a trade-theoretic model for three open economies two of which are in conflict with each other and the third is the source of foreign investments to the two warring countries. War efforts — which involve the use of soldiers — is determined endogenously. The purpose of...