Cover: The Additionality Factor in Tied U.S. Development Assistance.

The Additionality Factor in Tied U.S. Development Assistance.

Published 1972

by Richard V.L. Cooper

Purchase Print Copy

 Format Price
Add to Cart Paperback82 pages $25.00

This study of the balance-of-payments effects of U.S. development aid estimates the "return" to the United States, in additional exports from aid recipients, on its development loans to 20 countries. "Additional" exports are those that would not have occurred without aid, as distinguished from exports resulting indirectly, through respending. Previous studies underestimated the additionality factor by defining additional exports narrowly, as only those financed by letter of credit. Here, a model of the recipient's importing pattern is devised in which U.S. exports to the recipient are a function of (1) what the recipient's total imports would have been without aid and (2) the amount of aid. The results show an additionality factor of more than 90 percent for the 1969 U.S. development loan program, much higher than previously estimated. (See also R-973, R-975.) 82 pp.

This report is part of the RAND report series. The report was a product of RAND from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.