Aid and Trade - A Donor´s Perspective
Abstract
Foreign aid is given for a combination of economic, political, and humanitarian motives. While its impact on economic development in recipient countries has been the main focus of research recently, we concentrate on the question to what extent it also promotes donor countries’ exports. We examine this issue using Germany as a case study where the positive impact of aid on exports has been found to be extremely high. Using more advanced methods, we compute an average return (between EUR 1.49 to EUR 1.72) of one EUR of aid spent, well below previous findings, but still surprisingly large and robust.Download Info
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Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 171.Length: 28 pages
Date of creation: 22 Apr 2008
Date of revision:
Handle: RePEc:got:iaidps:171
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Keywords: bilateral aid; donors’ exports; time series properties of panel data; ECM and DOLS estimation in a panel context;Other versions of this item:
- Felicitas Nowak-Lehmann D. & Inmaculada Martinez-Zarzoso & Stephan Klasen & Dierk Herzer, 2009. "Aid and Trade - A Donor's Perspective," The Journal of Development Studies, Taylor and Francis Journals, vol. 45(7), pages 1184-1202.
- Felicitas Nowak-Lehmann D. & Inmaculada Martínez Zarzoso & Stephan Klasen & Dierk Herzer, 2009. "Aid and Trade - A Donor’s Perspective," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 7, Courant Research Centre PEG.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F35 - International Economics - - International Finance - - - Foreign Aid
- C - Mathematical and Quantitative Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-07 (All new papers)
- NEP-DEV-2008-06-07 (Development)
- NEP-INT-2008-06-07 (International Trade)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Martínez-Zarzoso, Inmaculada & Nowak-Lehmann D., Felicitas & Klasen, Stefan & Larch, Mario, 2008.
"Does German Development Aid Promote German Exports?,"
Proceedings of the German Development Economics Conference, Zurich 2008
26, Verein für Socialpolitik, Research Committee Development Economics.
- Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D. & Stephan Klasen & Mario Larch, 2009. "Does German Development Aid Promote German Exports?," German Economic Review, Verein für Socialpolitik, vol. 10, pages 317-338, 08.
- Inmaculada Martínez Zarzoso & Felictas Nowak-Lehmann D. & Stephan Klasen & Mario Larch, 2008. "Does German Development Aid Promote German Exports?," Ibero America Institute for Econ. Research (IAI) Discussion Papers 170, Ibero-America Institute for Economic Research.
- Martínez-Zarzoso, Inmaculada & Nowak-Lehmann D., Felicitas & Klasen, Stephan, 2010.
"The Economic Benefits of giving Aid in terms of Donors Exports,"
Proceedings of the German Development Economics Conference, Hannover 2010
28, Verein für Socialpolitik, Research Committee Development Economics.
- Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D. & Stephan Klasen, 2010. "The Economic Benefits of Giving Aid in Terms of Donors` Exports," Ibero America Institute for Econ. Research (IAI) Discussion Papers 202, Ibero-America Institute for Economic Research.
- Nowak-Lehmann D., Felicitas & Martínez-Zarzoso, Inmaculada & Cardozo, Adriana & Klasen, Stephan, 2010. "Foreign aid and recipient countries' exports: How important are improved bilateral trade relations?," Proceedings of the German Development Economics Conference, Hannover 2010 44, Verein für Socialpolitik, Research Committee Development Economics.
- José María, Larrú, 2012.
"La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica
[Aid and inequality relationship. Evidence and theoretical justification]," MPRA Paper 38857, University Library of Munich, Germany. - Dierk Herzer & Oliver Morrissey, . "The Long-Run Effect of Aid on Domestic Output," Discussion Papers 09/01, University of Nottingham, CREDIT.
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