Foreign aid encourages trade liberalization when given topolitically insecure leaders
2015
Can foreign aid be a useful tool to promote trade liberalization? In new research which studies 66
autocracies over two decades, Daniel Yuichi Kono and Gabriella R. Montinola find that foreign
aid does encourage trade liberalization – but only in countries where leaders are politically
insecure. They write that the less chance that an autocratic leader has of staying in power, the
greater the effect of aid on tariff reductions.
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