The Economics of International Transfers

Since the famous debate between Keynes and Ohlin on German reparations payments after World War I, international transfers have attracted the attention of economists. Today the subject is of even greater importance, particularly for developing countries, with billions of dollars flowing between nations. In The Economics of International Transfers Brakman and van Marrewijk survey the history of the subject and provide an up-to-date framework for the modeling of transfers. Topics covered include welfare effects, distortions, third parties, rent-seeking, the "trade or aid" discussion, multi-lateral agencies, tied aid and imperfect competition.