Effects of foreign aid on income through international trade

Inmaculada Martínez-Zarzoso

No wp-2019-5, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper presents a review of recent studies that estimate the trade effects of foreign aid. It also provides new results obtained using panel data techniques to estimate the direct effects of aid on international trade, accounting for countries' participation in free trade agreements, and the indirect effects that aid exerts on income through trade. A structural gravity model of trade augmented with aid and free trade agreement variables is estimated for a cross-section of 33 donor countries and 125 recipient countries over the period 1995 to 2016.

Keywords: Bilateral aid; Exports; Free trade; Gravity model; Foreign aid; International trade (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (2)

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Journal Article: Effects of Foreign Aid on Income through International Trade (2019)
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