Since the famous debate between Keynes and Ohlin on German reparation payments after World War I, international transfers have attracted the attention of economists. Today the subject is of even greater importance with billions of dollars flowing between nations as unilateral transfers. However the emphasis has shifted from balance-of-payments issues to the welfare consequences following a transfer and in particular the welfare issues arising from aid to developing countries. In The Economics of International Transfers, first published in 1998, Professors Brakman and van Marrewijk present an overview of transfers (including the history of transfers and current transfer flows) and their own unified framework in which they present important and original research. Subjects considered include welfare effects, distortions, third parties, rent-seeking, the 'trade or aid' discussion, multi-lateral agencies, tied aid and imperfect competition.
• The first book to give a comprehensive account of the economics of international transfers • Includes important and original new research • An easy-to-follow, up-to-date exposition including numerous examples and case studies, making this the most accessible book in this area, and the best starting point for non-specialists
Preface; 1. General overview and stylized facts; 2. The Keynes-Ohlin controversy; 3. Welfare effects: Samuelson's theorem; 4. Generalizations of Samuelson's theory; 5. Clouds on the horizon 1: distortions; 6. Clouds on the horizon 2: third parties; 7. The economics of multilateral; 8. The consequences of tied aid; 9. Imperfect competition; 10. Dynamics, money and the balance of payments; Appendix A: mathematical appendix.