Aid to agriculture,trade and structural change |
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| Authors: | Alessandra Pelloni Thanasis Stengos Ilaria Tedesco |
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| Affiliation: | 1. Department of Economics and Finance, University of Rome Tor Vergata, Rome, Italy;2. Department of Economics, University of Guelph, Guelph, ON, Canada;3. International Fund for Agricultural Development (IFAD), Rome, Italy |
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| Abstract: | This paper studies the effect on the industrialization process of developing countries of foreign aid given to agriculture to expand its productive capacity. According to our theoretical analysis, this effect is conditional on the openness of receiving countries. Our empirical results based on panel data for developing countries confirm this analysis, as we find that the effect of this kind of agricultural aid on the rate of growth of the industrial sector of landlocked countries is indeed positive. |
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| Keywords: | agricultural aid dual economy industrialization landlocked countries |
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