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Development aid and services export diversification

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  • Sèna Kimm Gnangnon

    (World Trade Organization)

Abstract

The relationship between development aid and services export diversification is at the heart of this study. The analysis covers 104 countries over the period 1985–2014, and shows that total development aid flows are positively associated with services export diversification in the recipient-countries. In particular least developed countries (LDCs) enjoy a higher positive effect of development aid on services export diversification than the set of other countries in the full sample do. Additionally, the effect of development on services export diversification takes place through several channels, including the real exchange rate, merchandise exports, foreign direct investment inflows, and education. These findings have important policy implications.

Suggested Citation

  • Sèna Kimm Gnangnon, 2021. "Development aid and services export diversification," International Journal of Economic Policy Studies, Springer, vol. 15(1), pages 125-156, February.
  • Handle: RePEc:spr:ijoeps:v:15:y:2021:i:1:d:10.1007_s42495-020-00053-y
    DOI: 10.1007/s42495-020-00053-y
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    More about this item

    Keywords

    Development aid; Services export diversification; Developing countries;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F35 - International Economics - - International Finance - - - Foreign Aid

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