This paper presents an overview of the economics of international aid, highlighting the historical literature and the contemporary debates. It reviews the “trade-theoretic” and the “contract-theoretic” analytical literature, and the empirical and institutional literature. It demonstrates...

Was sind die Strukturprobleme der Entwicklungsländer, durch die erwünschte wirtschaftliche, politische und soziale Veränderungen blockiert bleiben? Welche Entwicklungsstrategien sind unter den aktuellen Bedingungen geeignet, um solche Veränderungsprozesse in Gang zu setzen? Das Scheitern...

It is puzzling that India, which has a large domestic constituency of people suffering from underdevelopment, chronic poverty and mal-governance, is emerging as an important aid donor. With the intension of understanding why poor countries provide foreign aid, this article is the first to...