Konferenzbeitrag
Does Aid translate into Bilateral Trade? Findings for Recipient Countries
This paper uses the gravity model of trade to investigate the link between foreign aid and exports in recipient countries. Most of the theoretical work emphasizes the negative impact of aid on recipient countries' exports primarily due to exchange rate appreciation, disregarding possible positive effects of aid in overcoming supply bottlenecks and promoting bilateral trade relations. Our empirical findings -all based on endogeneity-proof techniques (such as Dynamic OLS or more refined techniques) - depend very strongly on whether bilateral trade relations and autocorrelation of the disturbances are controlled for. When not controlling for these phenomena, the impact of aid is quite substantial (especially in Asia, Latin America & Caribbean) but when sound estimation techniques are applied the net impact of aid on recipient countries' exports becomes insignificant in the full 130-country sample and the subsamples: Sub-Saharan Africa & MENA, Asia and Latin America & the Caribbean. However, this rather disappointing finding is in line with the small macroeconomic impact of aid found in earlier studies.
- Language
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Englisch
- Bibliographic citation
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Series: Proceedings of the German Development Economics Conference, Berlin 2011 ; No. 61
- Classification
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Wirtschaft
Trade: General
Foreign Aid
- Subject
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International trade
foreign aid
recipient exports
bilateral trade relations
- Event
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Geistige Schöpfung
- (who)
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Nowak-Lehmann D., Felicitas
Martínez-Zarzoso, Inmaculada
Cardozo, Adriana
Herzer, Dierk
Klasen, Stephan
- Event
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Veröffentlichung
- (who)
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
- (where)
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Kiel und Hamburg
- (when)
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2011
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Nowak-Lehmann D., Felicitas
- Martínez-Zarzoso, Inmaculada
- Cardozo, Adriana
- Herzer, Dierk
- Klasen, Stephan
- ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
Time of origin
- 2011
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Tödliche Ungleichheit : jedes Jahr sterben Millionen Mädchen und Frauen infolge von Diskriminierung
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Of Donor Coordination, Free-Riding, Darlings, and Orphans: The Dependence of Bilateral Aid on Other Bilateral Giving
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Of donor coordination, free-riding, darlings, and orphans: The dependence of bilateral aid on other bilateral giving
Of Donor Coordination, Free-Riding, Darlings, and Orphans: The dependence of bilateral aid commitments on other bilateral giving
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Tödliche Ungleichheit : jedes Jahr sterben Millionen Mädchen und Frauen infolge von Diskriminierung
Foreign Aid and Its Effect on Per-Capita Income (Growth) in Recipient Countries: Pitfalls and Findings from a Time Series Perspective
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