The Impact of AFT on Export Performance of Selected Asian Developing Countries

Abstract

Article History JEL Classification C23, F35, O19. By liberalizing trade and capitalizing on areas of comparatives advantages, the developing countries can benefit economically. There are a lot of obstacles which constraints the ability of countries to engage in international trade. Aid-for-Trade (AFT) is a part of overall Official Development Assistance (ODA)-which helps developing countries to build their trade in global markets. This paper employs System-GMM technique to examine whether AFT helps Asian aid-receiving countries to improve their export performance over the period [2000][2001][2002][2003][2004][2005][2006][2007][2008][2009][2010][2011][2012][2013][2014][2015]. The results show a positive and significant effect of AFT in multiple measures of export performance. However, the aids should be targeted and avoid any misusing. Contribution/ Originality:This study is one of very few studies which have investigated the impacts of total AFT and bilateral and multilateral AFT on selected Asian countries by using SYS-GMM which is new to AFT literature.

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