Foreign Aid, Exports And Development In Euromed
AbstractThis paper investigates the link between foreign aid and exports between the two shores of the Mediterranean. The main hypothesis is that the Euro-Mediterranean Process should promote not only trade but also stronger links between the European Union (EU) and the Middle East and North Africa (MENA). Hence, we expect development aid to have a positive impact on exports, which could also intensify the aid-trade relationship. In particular, we expect to find higher trade volumes in both directions after the process started in 1995 and intensified in the late 1990s and early 2000s, when several bilateral free trade agreements were signed. A gravity model augmented with bilateral and multilateral aid and trade regime variables is estimated for exports and imports from recipient countries to donor countries for the period 1988 to 2007 using advanced panel data techniques. Our method addresses the endogeneity bias of the trade regime/economic integration agreement (EIA) variable, assuming that decisions to form or enlarge EIAs are slow-moving relative to trade flows.
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Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal Middle East Development Journal.
Volume (Year): 04 (2012)
Issue (Month): 02 ()
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Web page: http://www.worldscinet.com/medj/medj.shtml
Other versions of this item:
- Inmaculada MartÃnez-Zarzoso & Felicitas Nowak-Lehmann D. & Florian Johannsen, 2012. "Foreign Aid, Exports and Development in Euromed," Ibero America Institute for Econ. Research (IAI) Discussion Papers 218, Ibero-America Institute for Economic Research.
- F10 - International Economics - - Trade - - - General
- F35 - International Economics - - International Finance - - - Foreign Aid
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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