01796cas a2200241 a 4500 AALejournalIMF004128 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451863895 1018-5941 BD-DhAAL BD-DhAAL Tokarick, Stephen. Immiserizing Foreign Aid : The Roles of Tariffs and Nontraded Goods / Stephen Tokarick. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (17 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 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 how aid affects the price of the nontraded good and on whether imports and the nontraded good are substitutes or complements in demand. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2006/129 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/129/001.2006.issue-129-en.xml IMF e-Library