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International Transfers from Rich to Poor Nations
Author(s) -
Tan KimHeng
Publication year - 1998
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/1467-9396.00118
Subject(s) - economics , welfare , international economics , capital (architecture) , developing country , capital flows , international trade , transfer problem , development economics , neoclassical economics , market economy , economic growth , profit (economics) , archaeology , history
A major shortcoming of the theoretical literature on international transfers is that it is not at all clear whether the welfare results obtained are consistent with transfers flowing from rich to poor nations. This is because economists hardly ever model the difference in wealth between the donor and recipient nations. This paper shows that, contrary to the literature, when international transfers are modeled explicitly to flow from rich to poor nations, donor‐enriching recipient‐impoverishing international transfers may not exist in a world which is accumulating capital.