| Abstract: | Abstract Gaytán-Fregoso and Lahiri (2000) claim that foreign aid may increase the level of illegal immigration. This comment reconsiders their perverse findings under endogenous as well as exogenous income repatriation. Furthermore, modifying Gaytán-Fregoso and Lahiri's model, in which aid is allotted in a lump-sum fashion, it is suggested that the actual amount of foreign aid should depend on the source country's performance, i.e., on the number of illegal immigrants, since such a policy will further reduce the number of illegal immigrants. |
