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A Global Perspective on Effectiveness of Aid for Trade

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  • Maria Berrittella
  • Jian Zhang

Abstract

Recent global initiatives on debt relief and development assistance call for increasing aid for trade to the poorest countries. We apply a multi-country computable general equilibrium model to measure the effectiveness of alternative aid for trade categories. Our findings show that aid for trade policies expand trade and alleviate international income inequalities in the recipient countries, that will benefit mainly from aid for trade adjustment and technical assistance. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Maria Berrittella & Jian Zhang, 2014. "A Global Perspective on Effectiveness of Aid for Trade," Open Economies Review, Springer, vol. 25(2), pages 289-309, April.
    • Handle: RePEc:kap:openec:v:25:y:2014:i:2:p:289-309
    DOI: 10.1007/s11079-013-9278-4
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    Cited by:

    1. Seungyeon Moon & Heesang Lee, 2020. "The Role of Standards-Related Capacity Building on the Sustainable Development of Developing Countries: Focusing on the Korea’s Standards-Related AfT Case in Bolivia," Sustainability, MDPI, vol. 12(12), pages 1-16, June.
    2. Frederick Mayer & William Milberg, 2013. "Aid for Trade in a world of global value chains: chain power, the distribution of rents and implications for the form of aid," Global Development Institute Working Paper Series ctg-2013-34, GDI, The University of Manchester.
    3. Sevde Arpaci‐Ayhan, 2023. "Foreign aid as a catalyst for improving productive capabilities in recipients," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(5), pages 738-760, July.
    4. Berrittella, Maria, 2017. "Can stability of foreign aid agreement reduce global income inequality?," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 105-111.
    5. Kis, Katalin, 2017. "A Kelet-afrikai Közösség belső kereskedelmére ható tényezők [Factors determining the intra-regional trade of the East African Community]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 943-969.

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    More about this item

    Keywords

    Aid for trade; Computable general equilibrium model; Income inequality; Trade balance; Welfare; C68; F13; F59; H77;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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