Foreign Aid and Export Performance: A Panel Data Analysis of Developing Countries
AbstractThe effect of foreign aid on economic activity of a country can be dampened as it can potentially have adverse effects on exports through a real exchange rate appreciation. In this study we examine the long-term relationship between export performance and foreign aid in developing countries while accounting for other factors. The estimates do not show negative effect of foreign aid on exports. The estimated coefficients are mostly positive but insignificant. The result is robust to use of two different export performance measures and different sub-samples.
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Bibliographic InfoPaper provided by Department of Economics, West Virginia University in its series Working Papers with number 06-10 Classification-.
Length: 23 pages
Date of creation: 2006
Date of revision:
Foreign aid; export performance; developing countries.;
Other versions of this item:
- Jonathan Munemo & Subhayu Bandyopadhyay & Arabinda Basistha, 2007. "Foreign aid and export performance: a panel data analysis of developing countries," Working Papers 2007-023, Federal Reserve Bank of St. Louis.
- NEP-ALL-2006-10-14 (All new papers)
- NEP-DEV-2006-10-14 (Development)
- NEP-INT-2006-10-14 (International Trade)
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- Nowak-Lehmann D., Felicitas & Martínez-Zarzoso, Inmaculada & Cardozo, Adriana & Herzer, Dierk & Klasen, Stephan, 2011. "Does Aid translate into Bilateral Trade? Findings for Recipient Countries," Proceedings of the German Development Economics Conference, Berlin 2011 61, Verein für Socialpolitik, Research Committee Development Economics.
- Jonathan Munemo, 2011. "Foreign aid and export diversification in developing countries," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 20(3), pages 339-355.
- Philipp Hühne & Birgit Meyer & Peter Nunnenkamp, 2013. "Who Benefits from Aid for Trade? Comparing the Effects on Recipient versus Donor Exports," Kiel Working Papers 1852, Kiel Institute for the World Economy.
- Badassa Tadasse & Bichaka Fayissa, 2009. "Determinants of the Allocation of US Aid forTrade," Working Papers 200901, Middle Tennessee State University, Department of Economics and Finance.
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