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Aid and Trade

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Author Info
Suwa Eisenmann, Akiko
Verdier, Thierry

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Abstract

The paper surveys the interactions between aid and trade, distinguishing between policies and outcomes as well as between various instruments. It first discusses the theoretical literature, focusing on the causal impact of aid on the recipient’s welfare via the trade channel, before turning to the empirical and institutional literature on the topic. It dentifies the main conclusions that are suggested by the literature and discusses the gaps that need to be filled out in order to get plausible policy recommendations.

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Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6465.

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Date of creation: Sep 2007
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Handle: RePEc:cpr:ceprdp:6465

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Related research
Keywords: aid; development; trade;

Other versions of this item:

Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F35 - International Economics - - International Finance - - - Foreign Aid
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General

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References listed on IDEAS
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.:
  1. Susan Prowse, 2002. "The Role of International and National Agencies in Trade-related Capacity Building," The World Economy, Blackwell Publishing, vol. 25(9), pages 1235-1261, 09. [Downloadable!] (restricted)
  2. Wagner, Don, 2003. "Aid and trade--an empirical study," Journal of the Japanese and International Economies, Elsevier, vol. 17(2), pages 153-173, June. [Downloadable!] (restricted)
  3. Hatzipanayotou, Panos & Michael, Michael S., 1995. "Foreign aid and public goods," Journal of Development Economics, Elsevier, vol. 47(2), pages 455-467, August. [Downloadable!] (restricted)
  4. Gale, David, 1974. "Exchange equilibrium and coalitions : An example," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 63-66, March. [Downloadable!] (restricted)
  5. Lahiri, Sajal & Raimondos-Moller, Pascalis & Wong, Kar-yiu & Woodland, Alan D., 2002. "Optimal foreign aid and tariffs," Journal of Development Economics, Elsevier, vol. 67(1), pages 79-99, February. [Downloadable!] (restricted)
  6. Kemp, Murray C & Kojima, Shoichi, 1985. "Tied Aid and the Paradoxes of Donor-Enrichment and Recipient-Impoverishment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 721-29, October. [Downloadable!] (restricted)
  7. Wilson,John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2003. "Trade facilitation and economic development : measuring the impact," Policy Research Working Paper Series 2988, The World Bank. [Downloadable!]
  8. Barrett, Christopher B & Mohapatra, Sandeep & Snyder, Donald L, 1999. "The Dynamic Effects of U.S. Food Aid," Economic Inquiry, Oxford University Press, vol. 37(4), pages 647-56, October.
    Other versions:
  9. Lipsey, Robert E & Weiss, Merle Yahr, 1984. "Foreign Production and Exports of Individual Firms," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 304-08, May. [Downloadable!] (restricted)
  10. Christopher S Adam & Stephen A O'Connell, 2004. "Aid versus Trade Revisited: Donor and Recipient Policies in the Presence of Learning-by-Doing," Economic Journal, Royal Economic Society, vol. 114(492), pages 150-173, 01. [Downloadable!] (restricted)
  11. Bhagwati, Jagdish N & Brecher, Richard A & Hatta, Tatsuo, 1983. "The Generalized Theory of Transfers and Welfare: Bilateral Transfers in a Multilateral World," American Economic Review, American Economic Association, vol. 73(4), pages 606-18, September. [Downloadable!] (restricted)
  12. Brenton, Paul, 2003. "Integrating the least developed countries into the world trading system : the current impact of EU preferences under everything but arms," Policy Research Working Paper Series 3018, The World Bank. [Downloadable!]
  13. Schweinberger, A G, 1990. "On the Welfare Effects of Tied Aid," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 457-62, May. [Downloadable!] (restricted)
  14. Maxwell, S. J. & Singer, H. W., 1979. "Food aid to developing countries: A survey," World Development, Elsevier, vol. 7(3), pages 225-246, March. [Downloadable!] (restricted)
  15. Arvind Panagariya, 2003. "Aid through Trade: An effective option," International Trade 0308011, EconWPA. [Downloadable!]
    Other versions:
  16. Heller, Peter S, 1975. "A Model of Public Fiscal Behavior in Developing Countries: Aid, Investment, and Taxation," American Economic Review, American Economic Association, vol. 65(3), pages 429-45, June. [Downloadable!] (restricted)
  17. Schweinberger, A. G., 2002. "Foreign aid, tariffs and nontraded private or public goods," Journal of Development Economics, Elsevier, vol. 69(1), pages 255-275, October. [Downloadable!] (restricted)
  18. Arvin, Mak & Cater, Bruce & Choudhry, Saud, 2000. "A Causality Analysis of Untied Foreign Assistance and Export Performance: The Case of Germany," Applied Economics Letters, Taylor and Francis Journals, vol. 7(5), pages 315-19, May. [Downloadable!] (restricted)
  19. Wilson, John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2004. "Assessing the potential benefit of trade facilitation : A global perspective," Policy Research Working Paper Series 3224, The World Bank. [Downloadable!]
  20. repec:rus:hseeco:123712 is not listed on IDEAS
  21. Bhagwati, Jagdish N. & Brecher, Richard A., 1980. "National welfare in an open economy in the presence of foreign-owned factors of production," Journal of International Economics, Elsevier, vol. 10(1), pages 103-115, February. [Downloadable!] (restricted)
  22. Brecher, Richard A & Bhagwati, Jagdish N, 1981. "Foreign Ownership and the Theory of Trade and Welfare," Journal of Political Economy, University of Chicago Press, vol. 89(3), pages 497-511, June. [Downloadable!] (restricted)
  23. Jones, Ronald W, 1970. "The Transfer Problem Revisited," Economica, London School of Economics and Political Science, vol. 37(146), pages 178-84, May. [Downloadable!] (restricted)
  24. Lahiri, Sajal & Raimondos, Pascalis, 1995. "Welfare effects of aid under quantitative trade restrictions," Journal of International Economics, Elsevier, vol. 39(3-4), pages 297-315, November. [Downloadable!] (restricted)
  25. van Wijnbergen, Sweder, 1985. "Aid, Export Promotion and the Real Exchange Rate: An African Dilemma?," CEPR Discussion Papers 88, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Katerina Gradeva & Inmaculada Martínez-Zarzoso, 2009. "Trade as Aid: The Role of the EBA-Trade Preferences Regime in the Development Strategy," Ibero America Institute for Econ. Research (IAI) Discussion Papers 197, Ibero-America Institute for Economic Research. [Downloadable!]
  2. Maoz, Yishay & Peled, Dan & Sarid, Assaf, 2009. "Trade Agreements, Bargaining and Economic Growth," MPRA Paper 17064, University Library of Munich, Germany. [Downloadable!]
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