Aid to Agriculture, Trade and Take-Off
The Rimini Centre for Economic Analysis, Working Paper 18-04
22 Pages Posted: 6 Feb 2019
Date Written: February 2018
This paper studies the effect of foreign aid to agriculture on the industrialization process of developing countries. Our theoretical analysis suggests a dichotomy between closed and open economies as regards the impact of aid given for productive purposes to the primary sector. Our empirical results conrm our analysis, as we find the effect is positive for landlocked countries only.
Keywords: Dual Economy; Agricultural Aid; Industrialization; Landlocked Countries
JEL Classification: F1; F4; O1; O4; Q1
Suggested Citation: Suggested Citation