Economics at your fingertips  

Does Aid for Trade Really Improve Trade Performance?

Massimiliano Calì () and Dirk Willem te Velde ()

World Development, 2011, vol. 39, issue 5, 725-740

Abstract: Summary Although the concept of aid for trade has quickly gained prominence among aid donors as well as aid recipients, relatively little is known about its impact on trade-related performance. We use data on a large subset of developing countries for recent years to examine the extent to which various types of aid for trade have helped recipient countries' trade performance. We find that aid for trade facilitation reduces the costs of trading. Moreover aid for trade has an overall positive and significant impact on exports. This effect is entirely driven by aid to economic infrastructure, while the other main category of aid for trade, aid to productive capacity, has no discernible effect on exports. Its strong positive association with exports at the sectoral level is due to an allocation skewed toward already well performing sectors.

Keywords: aid; for; trade; aid; effectiveness; trade; cost; of; trading; exports (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (56) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
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:

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-03-31
Handle: RePEc:eee:wdevel:v:39:y:2011:i:5:p:725-740