Lorz, Oliver; Thede, Susanna - 2018 - This Version: January 15, 2018
In this paper, we consider aid payments as a possible explanation for tariff overhangs. According to our hypothesis …, rich countries may use development aid to pay for tariff concessions. Developing countries, in turn, may anticipate such a … policy in the negotiations for tariff bindings. Setting the bound tariff rate at a relatively high level may then serve as a …