Arbeitspapier

Aid and Trade - A Donor's Perspective

One reason donors provide foreign aid is to support their exports to aid-recipient countries. Time series data for Germany suggests an average return of between US$ 1.04 to US$ 1.50 for each US dollar of aid spent by Germany. Although this is well below previous estimates, the value is robust to different specifications and econometric approaches. Interestingly, we find strong evidence of crowding out between bilateral donors in the sense that bilateral aid from other EU members significantly reduces exports from Germany to the recipients. The evidence suggests that, in the long-run, aid causes exports and not vice versa. We discuss the implications these findings might have for aid volumes and allocation.

Sprache
Englisch

Erschienen in
Series: Discussion Papers ; No. 7

Klassifikation
Wirtschaft
Trade: General
Foreign Aid
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Thema
trade
foreign aid
donors
time series based panel estimation techniques

Ereignis
Geistige Schöpfung
(wer)
Nowak-Lehmann D., Felicitas Nowak-Lehmann
Martínez Zarzoso, Inmaculada
Klasen, Stephan
Herzer, Dierk
Ereignis
Veröffentlichung
(wer)
Georg-August-Universität Göttingen, Courant Research Centre - Poverty, Equity and Growth (CRC-PEG)
(wo)
Göttingen
(wann)
2009

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Nowak-Lehmann D., Felicitas Nowak-Lehmann
  • Martínez Zarzoso, Inmaculada
  • Klasen, Stephan
  • Herzer, Dierk
  • Georg-August-Universität Göttingen, Courant Research Centre - Poverty, Equity and Growth (CRC-PEG)

Entstanden

  • 2009

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