Heterogeneous effects of Aid‐for‐Trade on donor exports: Why is Japan different?

Shuhei Nishitateno and Hayato Umetani

Review of International Economics, 2023, vol. 31, issue 3, 1117-1145

Abstract: This study estimates the Aid‐for‐Trade (AfT)‐export elasticity from the donor perspective, focusing on the top‐five donor countries: Japan, Germany, France, US, and UK. We find the elasticity for Japan is large, suggesting that the Japanese AfT generates a net export expansion, in contrast with the other top donors. We examine the potential mechanism behind the export creation effect of Japanese AfT using unique contract data on infrastructure‐related projects worldwide. The results suggest that Japanese AfT, highly concentrated in economic infrastructure, works as an informal tying arrangement, closely linking aid to donor exports associated with capital goods for infrastructure construction.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/roie.12656

Related works:
Working Paper: Heterogeneous Effects of Aid-for-Trade on Donor Exports: Why is Japan different? (2022)
Working Paper: Heterogeneous effects of aid-for-trade on donor exports: Why is Japan different? (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:reviec:v:31:y:2023:i:3:p:1117-1145

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576

Access Statistics for this article

Review of International Economics is currently edited by E. Kwan Choi

More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().