Evaluating Aid for Trade: A Survey of Recent Studies

Cadot, Olivier; Fernandes, Ana M.; Gourdon, Julien; Mattoo, Aaditya; Mélo, Jaime de

doi:10.1111/twec.12138

Cited by 41 publications

(11 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Meanwhile, Hühne, Meyer, and Nunnenkamp (2014) examine the heterogeneous impact of aid for trade across countries in different income groups and find that aid for trade has a significant positive impact only among middle-income countries. Finally, reviewing the empirical literature on the impact of aid for trade, Cadot, Fernandes, Gourdon, Mattoo, and Melo (2014) conclude that aid spent on hard and soft infrastructure has at best a mixed impact on trade costs and time to export.…”

Section: Literature Reviewmentioning

confidence: 99%

Does aid for trade diversify the export structure of recipient countries?

Kim

2019

World Economy

View full text Add to dashboard Cite

The importance of aid for trade as a tool for facilitating trade, economic growth and social development has received attention since the concept was introduced in 2005. While one of the main targets of aid for trade is export diversification, reflecting the fact that the exports of many developing countries are concentrated in a small range of items, there have not been many efforts to measure the effect of aid for trade on export structure. This study, therefore, attempts to trace the relationship between aid for trade and 133 aid recipients' export structure between 1996 and 2013. Using the Herfindahl–Hirschman Index to measure the degree of export concentration, the findings suggest that total aid for trade has reduced the concentration level in the short run. In the long run, on the other hand, aid for trade has had no significant effect on export structure of recipient countries. Only aid for building productive capacity, which is one of the three categories of aid for trade, contributes to lower concentration. Yet, this change is not caused by an increase in export diversity but by the redistribution of shares of existing products of a similar sophistication level.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Does aid for trade diversify the export structure of recipient countries?

Kim

2019

World Economy

View full text Add to dashboard Cite

show abstract

“…There is a rapidly expanding literature analyzing AfT, some of which is surveyed in Cadot, Fernandes, Gourdon, Mattoo, and de Melo (2014). Much of this involves cross-country studies.…”

Section: Related Literaturementioning

confidence: 99%

“…A general finding of this literature is that AfT, especially aid that supports trade facilitation has a strongly trade-promoting effect and that the return on such AfT is high, substantially exceeding the costs (Hoekman & Shepherd, 2015). Moreover, research suggests one important benefit of AfT for trade facilitation is that it can support greater diversification (Cadot et al, 2014;Beverelli, Neumueller, & Teh, 2015;Persson, 2013). 2 Previous research on the aggregate AfT-trade relationship has used IVs, GMM, and dynamic OLS specifications to account for endogeneity and uniformly found statistically weak effects in the context of merchandise trade.…”

Section: Related Literaturementioning

confidence: 99%

Aid for trade and international transactions in goods and services

Hoekman

Shingal

2019

Rev International Economics

View full text Add to dashboard Cite

The empirical literature on aid for trade (AfT) mainly considers its effects on merchandise trade and investment. In this paper, we provide an in‐depth analysis of the relationship between AfT and trade in services using both aggregate and bilateral data. We find a statistically weak effect of AfT on both goods and services trade in our aggregate analysis once we account for endogeneity in the AfT–trade relationship. In contrast, the bilateral analysis suggests that AfT, in particular that allocated to services activities, especially economic infrastructure, has a positive effect on recipients’ merchandise exports to donor countries. This novel finding is robust across different lag structures and provides evidence of complementarities between services AfT and goods trade.

show abstract

“…Reviewing the recent literature on the effectiveness of AFT in reducing trade costs, Cadot, Fernandes, Gourdon, Mattoo, and de Melo (2014) stress the need for complementary reforms designed to making transport services more competitive. Similarly, controlling for allocation issues and examining the effectiveness of AFT facilitation, Cali and Te Velde (2011) find the effects of AFT facilitation to be minimal and call for a reconsideration of the allocation of AFT across activities and sectors.…”

Section: The Literaturementioning

confidence: 99%

Are bilateral and multilateral aid‐for‐trade complementary?

2017

View full text Add to dashboard Cite

Using the first comprehensive estimates of ad valorem tariff equivalent bilateral trade costs spanning the time period 2002–10, we examine whether the aid‐for‐trade (AFT) inflows reduce bilateral trade costs facing aid recipients. If so, we ask whether the trade costs reduction effects of AFT from bilateral and multilateral sources are complementary. By showing the extent to which the observed trade cost reduction effects of AFT from bilateral (multilateral) sources correlate with the magnitudes of AFT disbursements from multilateral (bilateral) sources, we present plausible explanation for the cross‐country variations in the extent to which AFT promotes trade flows. Our findings have, thus, important policy implications for shaping future discourses on the coordination of disbursements for enhancing the effectiveness of AFT.

show abstract

Evaluating Aid for Trade: A Survey of Recent Studies

Abstract: The demand for accountability in "Aid-for-Trade"(AFT) is increasing but monitoring

Cited by 41 publications

References 47 publications

Does aid for trade diversify the export structure of recipient countries?

Does aid for trade diversify the export structure of recipient countries?

Aid for trade and international transactions in goods and services

Are bilateral and multilateral aid‐for‐trade complementary?

Contact Info

Product

Resources

About