{
  "title": "Immiserizing Foreign Aid: The Roles of Tariffs and Nontraded Goods",
  "publication": "IMF Working Papers, May 1, 2006",
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  "summary": "International trade theory has pointed out that factor accumulation could immiserize a country if it is sufficiently biased toward the export sector, or if it is biased toward an importcompeting sector in the presence of tariff protection.",
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      "heading": "Summary and central finding",
      "content": "- International trade theory has pointed out that factor accumulation could immiserize a country if it is sufficiently biased toward the export sector, or if it is biased toward an importcompeting sector in the presence of tariff protection.\n- This paper analyzes the impact of aid, in the form of an increase in the capital stock used only in the nontraded sector, on real income.\n- Yano and Nugent (1999) discussed this issue, but their analysis turned out to be incorrect.\n- This paper demonstrates that whether aid in the form of an increase in capital specific to the nontraded sector reduces welfare depends on:\n  - how aid affects the price of the nontraded good, and\n  - whether imports and the nontraded good are substitutes or complements in demand."
    },
    {
      "heading": "Analytical focus and scope",
      "content": "- Focus: impact of aid modeled as an increase in capital specific to the nontraded sector on real income and welfare.\n- Key mechanisms examined:\n  - price effects on the nontraded good caused by sector-specific capital accumulation, and\n  - demand relationships between imports and the nontraded good (substitutes versus complements).\n- Corrects and revises the prior analysis by Yano and Nugent (1999), which the paper finds to be incorrect."
    },
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      "heading": "Subject areas and keywords",
      "content": "- Subject: Factor models, Imports, Inflation, Labor, Tariffs\n- Keywords: WP"
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      "content": "- Author: Stephen Tokarick\n- Date: May 1, 2006\n- Series: Working Paper No. 2006/129\n- Issue: 129\n- Volume: 2006\n- Pages: 17\n- DOI: https://doi.org/10.5089/9781451863895.001\n- Stock No: WPIEA2006129\n- ISBN: 9781451863895\n- ISSN: 1018-5941\n- Citation preview (format: Chicago): Stephen Tokarick. \"Immiserizing Foreign Aid: The Roles of Tariffs and Nontraded Goods\", IMF Working Papers 2006, 129 (2006), accessed 9/17/2026, https://doi.org/10.5089/9781451863895.001\n\nSource: Immiserizing Foreign Aid: The Roles of Tariffs and Nontraded Goods, IMF Working Papers No. 2006/129.\n\n---\n\n Content in this bundle\n\n- wp06129 — Sections 1–2\n  - wp06129 — Sections 1–2 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp06129 — Sections 1–2 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/immiserizing-foreign-aid-the-roles-of-tariffs-and-nontraded-goods-19100"
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    "Authors: Stephen Tokarick",
    "Published: May 1, 2006",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451863895.001",
    "International trade theory has pointed out that factor accumulation could immiserize a country if it is sufficiently biased toward the export sector, or if it is biased toward an importcompeting sector in the presence of tariff protection.",
    "This paper analyzes the impact of aid, in the form of an increase in the capital stock used only in the nontraded sector, on real income.",
    "Yano and Nugent (1999) discussed this issue, but their analysis turned out to be incorrect.",
    "This paper demonstrates that whether aid in the form of an increase in capital specific to the nontraded sector reduces welfare depends on:",
    "Focus: impact of aid modeled as an increase in capital specific to the nontraded sector on real income and welfare.",
    "Key mechanisms examined:",
    "Corrects and revises the prior analysis by Yano and Nugent (1999), which the paper finds to be incorrect.",
    "Subject: Factor models, Imports, Inflation, Labor, Tariffs",
    "Keywords: WP",
    "Author: Stephen Tokarick",
    "Date: May 1, 2006",
    "Series: Working Paper No. 2006/129",
    "Issue: 129",
    "Volume: 2006",
    "Pages: 17",
    "DOI: https://doi.org/10.5089/9781451863895.001",
    "Stock No: WPIEA2006129",
    "ISBN: 9781451863895",
    "ISSN: 1018-5941",
    "Citation preview (format: Chicago): Stephen Tokarick. \"Immiserizing Foreign Aid: The Roles of Tariffs and Nontraded Goods\", IMF Working Papers 2006, 129 (2006), accessed 9/17/2026, https://doi.org/10.5089/9781451863895.001",
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