This paper analyzes the effect of foreign aid on illegal immigration and host country welfare using a general equilibrium model. It shows that foreign aid may worsen the recipient nation's terms of trade. Furthermore, it may also raise illegal immigration, if the terms of trade effect on...

China's trade with South Africa has become more important in recent years, and a SACU-China free trade agreement has been proposed to further strengthen this trade relationship. This paper examines the relevance of this proposed trade policy for further enhancing bilateral trade flows and...

This paper analyzes the effect of external finance on African exports of manufactured varieties to the EU. Results from cross-section and panel regressions show that external finance has a positive and significant impact on the exports of manufactured varieties. Related literature has shown that...

This paper analyzes the effect of foreign aid on illegal immigration and host country welfare using a general equilibrium model. We show that foreign aid may worsen the recipient nation’s terms of trade. Furthermore, it may also raise illegal immigration, if the terms of trade effect on...

This paper uses data on new firm registrations to examine entrepreneurship in Africa relative to other developing countries. The results show that new firm creation is more pronounced in other developing regions than in Africa. In addition, the results also show that entry deregulation and...

Sub-Saharan Africa (SSA) is highly dependent on imported capital goods that are used in the import competing industrialized sector. The exporting sector focuses on primary products where land and labor are predominantly used. We build a two-good general equilibrium model, where the import...

The effect of foreign aid on economic activity of a country can be dampened due to potentially adverse effects on exports through a real exchange rate appreciation. In this study we examine the long-term relationship between export performance and foreign aid in developing countries while...

The author contributes to related literature by analyzing how economic growth in Sub-Saharan Africa is affected by the growing dependency on capital goods from China. The author finds robust evidence in support of the hypothesis that capital goods from China are an important technology transfer...

This paper shows that the complementarity between foreign direct investment (FDI) and domestic investment significantly depends on regulations required to start a new domestically owned business in host economies. It finds evidence that FDI crowds out domestic investment in countries with entry...