Meyer, Wolfgang; Raimondos-Møller, Pascalis - Økonomisk Institut, Copenhagen Business School - 1999
Why do donor countries give foreign aid? The answers found in the literature are: <p> (i) because donor countries care for recipient countries (e.g. altruism), and/or (ii) <p> because there exist distortions that make the indirect gains from foreign aid (e.g. <p> terms of trade effects) to be larger than...</p></p></p>