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Development aid and services export diversification

Sèna Kimm Gnangnon ()
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Sèna Kimm Gnangnon: World Trade Organization

International Journal of Economic Policy Studies, 2021, vol. 15, issue 1, No 8, 125-156

Abstract: Abstract The relationship between development aid and services export diversification is at the heart of this study. The analysis covers 104 countries over the period 1985–2014, and shows that total development aid flows are positively associated with services export diversification in the recipient-countries. In particular least developed countries (LDCs) enjoy a higher positive effect of development aid on services export diversification than the set of other countries in the full sample do. Additionally, the effect of development on services export diversification takes place through several channels, including the real exchange rate, merchandise exports, foreign direct investment inflows, and education. These findings have important policy implications.

Keywords: Development aid; Services export diversification; Developing countries (search for similar items in EconPapers)
JEL-codes: F13 F35 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s42495-020-00053-y

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