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Does Aid for Trade from the North promote South-South trade?

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  • Philipp H�hne
  • Birgit Meyer
  • Peter Nunnenkamp

Abstract

Our empirical estimations indicate that Aid for Trade (AfT) granted by OECD donors strengthens the trade relations of recipient countries with other developing countries. By focusing on South-South trade, we mitigate endogeneity concerns that have plagued analyses of trade between recipients and donors of AfT.

Suggested Citation

  • Philipp H�hne & Birgit Meyer & Peter Nunnenkamp, 2014. "Does Aid for Trade from the North promote South-South trade?," Applied Economics Letters, Taylor & Francis Journals, vol. 21(17), pages 1230-1233, November.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:17:p:1230-1233
    DOI: 10.1080/13504851.2014.922665
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    References listed on IDEAS

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    1. Christopher S. Adam & David L. Bevan, 2006. "Aid and the Supply Side: Public Investment, Export Performance, and Dutch Disease in Low-Income Countries," The World Bank Economic Review, World Bank, vol. 20(2), pages 261-290.
    2. Anke Hoeffler & Verity Outram, 2011. "Need, Merit, or Self‐Interest—What Determines the Allocation of Aid?," Review of Development Economics, Wiley Blackwell, vol. 15(2), pages 237-250, May.
    3. Akiko Suwa-Eisenmann & Thierry Verdier, 2007. "Aid and trade," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 23(3), pages 481-507, Autumn.
    4. Philipp H�hne & Birgit Meyer & Peter Nunnenkamp, 2014. "Who Benefits from Aid for Trade? Comparing the Effects on Recipient versus Donor Exports," Journal of Development Studies, Taylor & Francis Journals, vol. 50(9), pages 1275-1288, September.
    5. Jacques J. Polak, 1996. "Is APEC a Natural Regional Trading Bloc? A Critique of the ‘Gravity Model’of International Trade," The World Economy, Wiley Blackwell, vol. 19(5), pages 533-543, September.
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    Cited by:

    1. Stender, Frederik & Vogel, Tim, 2023. "What role for aid for trade in (deep) PTA relations? Empirical evidence from gravity model estimations," IDOS Discussion Papers 13/2023, German Institute of Development and Sustainability (IDOS).
    2. Bedassa Tadesse & Elias Shukralla & Bichaka Fayissa, 2017. "Are bilateral and multilateral aid-for-trade complementary?," The World Economy, Wiley Blackwell, vol. 40(10), pages 2125-2152, October.
    3. Hühne, Philipp & Meyer, Birgit & Nunnenkamp, Peter, 2014. "Aid for trade: Assessing the effects on recipient exports of manufactures and primary commodities to donors and non-donors," Kiel Working Papers 1953, Kiel Institute for the World Economy (IfW Kiel).
    4. 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

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F35 - International Economics - - International Finance - - - Foreign Aid

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