Who Benefits from Aid for Trade? Comparing the Effects on Recipient versus Donor Exports

Recent studies offer an ambiguous picture on the effectiveness of foreign aid in strengthening the export capacity of recipient countries. Moreover, the literature on aid for trade (AfT) has often neglected the fact that exporters in the donor countries may be among the main beneficiaries. We simult...

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Veröffentlicht in:The Journal of development studies 2014-09, Vol.50 (9), p.1275-1288
Hauptverfasser: Hühne, Philipp, Meyer, Birgit, Nunnenkamp, Peter
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creator Hühne, Philipp
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description Recent studies offer an ambiguous picture on the effectiveness of foreign aid in strengthening the export capacity of recipient countries. Moreover, the literature on aid for trade (AfT) has often neglected the fact that exporters in the donor countries may be among the main beneficiaries. We simultaneously estimate and compare the effects of AfT on trade in both directions. We find that AfT increases recipient exports to donors as well as recipient imports from donors. The first effect tends to dominate the latter, which contradicts the sceptical view that donors grant AfT primarily to promote their own export interests.
doi_str_mv 10.1080/00220388.2014.903246
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source Sociological Abstracts; EBSCOhost Business Source Complete
subjects Comparative analysis
Exporters
Exports
Foreign aid
Imports
International trade
title Who Benefits from Aid for Trade? Comparing the Effects on Recipient versus Donor Exports
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