We develop a two-period model with foreign investment and international borrowing and lending. We find that temporary devaluation has no effect on contemporaneous foreign investment, but the effect on future foreign investment is positive via the working of the credit market. These findings are...

The paper considers the welfare effect of the harmonisation of indirect taxes which finances the production of a non-tradeable public good. Such harmonisation affects the prices of the private goods not only directly but also via changes in public good provision in each country. The welfare...

This paper investigates the optimality of international income transfers in a two-country model in which each country engages in non-cooperative trade policy behaviour. It is shown that unconditional income transfers can never be optimal for the donor country, which not only suffers the loss of...

This paper considers the welfare effect of foreign aid when the recipient country has protectionist policy in the form of tariffs in place and aid is tied to the reduction of tariffs. It is shown that in a two country framework such aid cannot give rise to the well known transfer paradox. In the...

The purpose of this paper is to pull together the emerging theoretical and empirical literature on the economics of child labour, and to draw out the underlying commonalities between various contributions in this field. In doing so, the authors also identify various policy options and their...

The literature on indirect tax reforms in pollution-ridden economies is quite limited. This paper, using a model of a small open economy with production and consumption generated pollution, considers the welfare implications of tax reforms within an integrated structure of consumption and...

We develop a North-South model of foreign aid and cross-border pollution resulting from production activities in the recipient country. There is both private and public abatement of pollution, the latter being financed through emissions tax revenue and foreign aid. We characterise a Nash...