Dynamic Analysis of Foreign Aid with Consideration of Political Activity

2017 Fiscal Year Final Research Report

• Project/Area Number: 15K03449
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic policy
• Research Institution: Tohoku Gakuin University
• Principal Investigator: SHINOZAKI Tsuyoshi 東北学院大学, 経済学部, 准教授 (80467266)
• Co-Investigator(Kenkyū-buntansha): 金子 昭彦 早稲田大学, 政治経済学術院, 教授 (10282873) ; 濱田 弘潤 新潟大学, 人文社会・教育科学系, 准教授 (70323954) ; 柳原 光芳 名古屋大学, 経済学研究科, 教授 (80298504) ; 加藤 秀弥 龍谷大学, 経済学部, 准教授 (80434629)
• Project Period (FY): 2015-04-01 – 2018-03-31
• Keywords: 経済援助 / 世代間の消費の外部性 / 社会保障制度 / 世代重複モデル / 政治経済学

Outline of Final Research Achievements

We scrutinized the effects of international foreign aid on welfares of donor and recipient countries in various economic environments. Firstly, we investigated how the effects of foreign aid on both countries'welfares are affected by intergenerational interdependency such as altruism and donor's sharing of burden and/or the recipient’s distribution of aid transfer. Secondly, we examined how a pay-as-you-go pension system affects the effects of foreign aid on both countries' welfares. In particular, our research succeeded in showing that international interdependency considered can trigger the possibility of the transfer paradox by improving the terms-of-trade of a donor country and/or deteriorating the terms-of-trade of a recipient. In addition, we clarified that political lobbying promotes economic growth of developing countries, which suggests that the appropriate design of political institution is required to prevent developing countries from falling into a poverty trap.

Free Research Field

経済成長論，国際経済学，公共経済学