01739cas a2200241 a 4500 AALejournalIMF003437 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451861693 1018-5941 BD-DhAAL BD-DhAAL Choi, Eun. Infrastructure Aid, Deindustrialization, and Welfare / Eun Choi. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the deindustrialization and welfare effects of infrastructure aid in developing countries. In the short run, cost-saving infrastructure aid in the export sector increases the domestic wage rate, whereas the same aid in the import sector lowers it. The cost of nontraded goods rises whether the export or the import sector receives infrastructure aid. Infrastructure aid in the nontraded sector has no effect on domestic factor prices. Laborsaving infrastructure aid causes an expansion of the export sector, while capital-saving infrastructure aid results in a Dutch disease effect in the export sector. If aid is below the optimal level, infrastructure aid increases consumer income and welfare. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2005/150 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/150/001.2005.issue-150-en.xml IMF e-Library