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The Helsinki Arrangement: its impact on the provision of tied aid
Author(s) -
Lammersen F.,
Owen A.D.
Publication year - 2001
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/ijfe.144
Subject(s) - disbursement , incentive , economics , developing country , international economics , capital (architecture) , public economics , finance , economic growth , market economy , archaeology , history
Abstract The use of ‘tied’ loans with concessionary interest rates as an incentive for developing countries to procure capital goods from industrialized countries has been an on‐going subject of dispute amongst the latter in regard to their trade distorting impact. A major initiative by the OECD in 1992 was designed to minimize this problem, by prohibiting the use of such loans for projects that were deemed to be commercially viable. This paper assesses the impact of the change in ‘rules’ on the disbursement of concessionary loans and discusses issues that remain unresolved. Copyright © 2001 John Wiley & Sons, Ltd.