The paradox of transfers: Distribution and the Dutch disease.
We develop a new model of international trade with nonhomothetic preferences whereby within‐country income distribution affects the pattern of trade and economic growth. Alternative forms of foreign transfers, such as foreign aid and remittances, interact with the income distribution in dissimilar m...
| Publicado en: | Southern Economic Journal Vol. 91; no. 3; pp. 1140 - 1176 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Jan2025
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=183867439&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 183867439 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Jan2025 vid: 91 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 183867439 10.1002/soej.12736 ppf: 1140 ppct: 36 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 4MB tig: atl: The paradox of transfers: Distribution and the Dutch disease. aug: au: Behzadan, Nazanin Chisik, Richard affil: Department of Economics, SDMB‐325, University of Prince Edward Island, Charlottetown Prince Edward Island, , Canada su: Income distribution International trade Economic expansion International economic assistance Remittances Panel analysis Resource curse sug: subj: Income distribution International trade Economic expansion International economic assistance International Affairs Administration of General Economic Programs International assistance International Trade Financing Remittances Panel analysis Resource curse keyword: Dutch disease foreign aid inequality remittances Dutch disease foreign aid inequality remittances ab: We develop a new model of international trade with nonhomothetic preferences whereby within‐country income distribution affects the pattern of trade and economic growth. Alternative forms of foreign transfers, such as foreign aid and remittances, interact with the income distribution in dissimilar manners, which in turn generates differences in spending patterns, production patterns, and the pattern of international trade. In a three sector model with international trade and production we show that while remittances foster economic growth, foreign aid can cause economic stagnation. A production shift to the sector with less long‐run growth potential is known as the Dutch disease and in our model the disease is triggered by within‐country income differences and the form of the foreign transfer. We empirically verify these hypotheses with data from a panel covering the years 1991–2009 while controlling for the issues of omitted variable bias and the possible endogeneity of foreign aid and remittances. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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