Foreign Trade, Aid and Economic Growth in Less-Developed Countries by Gunnar Floystad. Oslo: Scandinavian University Books, Universitetsforlaget, 1968.

Gunnar Floystad’s Foreign Trade, Aid and Economic Growth is concerned with the interrelations between foreign trade, foreign aid and economic growth of a group of less developed countries (LDC) comprising all of Latin America, Africa, the Middle East and Asia, excluding USSR, Japan and Mainland China. The book is divided into two parts: Part One uses a model of trade, aid and growth to deduce a relationship between GNP, exports and net capital inflows of the LDC. Assuming exports to be given exogenously and net capital inflows to grow at a constant rate over time, growth of GNP is projected corresponding to alternative postulates about growth of exports and growth of net capital inflows via the simple exponential function, E(t) = M0 [X(t) + B(t)]B, where E, X and B stand for GNP, exports and net capital inflows respectively, and M<> is a constant. Part Two analyses in some details the export prospects for a list of traditional products currently exported from LDC to developed countries.