Foreign Aid for Trade Policy Reforms

Download or read book Foreign Aid for Trade Policy Reforms written by Malokele Nanivazo and published by . This book was released on 2011 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: The goal of this dissertation is to investigate how foreign aid can be used as a means to induce a recipient country to engage in trade policy reforms. A two-good and two-country model was developed where the donor commits to give foreign aid in the first period and disburses in the second period. The donor's commitment for foreign aid is based on a formula where the volume of foreign aid is a function of the recipient tariff rate. The donor and recipient actions were analyzed in two types of game: a passive donor game and an active donor game. The active donor game has two sub-games: a simultaneous game and a sequential game. This dissertation is composed of two theoretical chapters and one empirical chapter.