Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

19

Publisher

Utah State University Department of Economics

Publication Date

2006

First Page

1

Last Page

31

Abstract

This paper investigates the impact of foreign aid on foreign investment when foreign aid is used to finance a public consumption good. By formulating and analyzing a three-good general equilibrium model, we show that such foreign aid could crowd out foreign investment, given a factor intensity condition.



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