Aid and Trade - A Donor´s Perspective

Felicitas Nowak-Lehmann D. (), Inmaculada Martínez-Zarzoso, Stephan Klasen and Dierk Herzer
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Felicitas Nowak-Lehmann D.: University of Goettingen / Germany, http://www.uni-goettingen.de/de/sh/64104.html
Authors registered in the RePEc Author Service: Felicitas Nowak-Lehmann D.

No 171, Ibero America Institute for Econ. Research (IAI) Discussion Papers from Ibero-America Institute for Economic Research

Abstract: Foreign aid is given for a combination of economic, political, and humanitarian motives. While its impact on economic development in recipient countries has been the main focus of research recently, we concentrate on the question to what extent it also promotes donor countries’ exports. We examine this issue using Germany as a case study where the positive impact of aid on exports has been found to be extremely high. Using more advanced methods, we compute an average return (between EUR 1.49 to EUR 1.72) of one EUR of aid spent, well below previous findings, but still surprisingly large and robust.

Keywords: bilateral aid; donors’ exports; time series properties of panel data; ECM and DOLS estimation in a panel context (search for similar items in EconPapers)
JEL-codes: C F14 F35 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2008-04-22
New Economics Papers: this item is included in nep-dev and nep-int
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Aid and Trade - A Donor's Perspective (2009)
Working Paper: Aid and Trade - A Donor’s Perspective (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:got:iaidps:171

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