Bandyopadhyay, Subhayu; Lahiri, Sajal; Younas, Javed - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2011
We examine the interaction between foreign aid and binding borrowing constraint for arecipient country. We also analyze … foreign aid it receives, and (ii) there is a criticallevel of international financial transfer, and the marginal effect of … foreign aid is larger than thatof loans if and only if the transfer (loans or foreign aid) is below this critical level.... …