Ayuda para el Desarrollo

What is the relation between foreign aid and trade?
Nicholas Gachet
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abril 22, 2016

What is the relation between foreign aid and trade?

LONDON, United Kingdom – This essay will discuss the relationship between foreign aid and trade. Major scholars on both topics often find two outcomes: 1) trade openness is commonly part of the constitution of “good” policies that promotes effectiveness of foreign aid, hence endorses growth (Burnside and Dollar, 2000). Furthermore there is a a great amount of literature about trade promoting growth directly (Frankel and Romer,1999; Wacziarg and Welch, 2008; Sachs and Warner,1995). 2) Foreign aid does not promote growth by its own (Easterly,2003; Denizer et al,2014) thus, probably, if trade promotes growth, foreign aid does not have a significant “indirect” […]