Cui, Xiaoyong; Gong, Liutang - In: Journal of Macroeconomics 30 (2008) 3, pp. 1269-1284
In an infinite-horizon model with Marshallian time preferences, foreign aid, foreign borrowing, and domestic capital accumulation, this paper reexamines the effects of foreign aid on domestic capital accumulation and foreign borrowing. Comparative static analysis shows that a permanent increase...