Sectoral Aid-for-Trade and Sectoral Exports: A Seemingly Unrelated Regression Analysis
This paper examines the relation between foreign aid that is targeted for export promotion of specific sectors in developing countries and sector specific exports of those countries. Three major sectors are studied - agriculture, manufacturing, and service. A major component of this study is the compilation of sector-wise disaggregated aid-for-trade (AfT) measures for both committed aid and disbursed aid based on aid data and guidelines from OECD's Creditor Reporting System. Our response variable is sectoral exports and primary covariate is sectoral-AfT or SAfT, and since exports in one sector can be correlated with exports in other sectors within a country, a seemingly unrelated regression (SUR) framework is used to capture the interdependence among various sectors in an explicit way, producing efficient estimates. This study analyzes annual export level data of 121 AfT-recipient countries over a period of sixteen years (1995-2010) in the case of commitment aid data and over a period of nine years (2002-2010) in the case of disbursement aid data. The results show that the regression estimates corresponding to sectoral-AfT are positive and statistically significant for all sectors.
Volume (Year): 33 (2013)
Issue (Month): 4 ()
|Contact details of provider:|| |
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.:
- Dalgaard, Carl-Johan & Hansen, Henrik & Tarp, Finn, 2002.
"On the Empirics of Foreign Aid and Growth,"
63696, University Library of Munich, Germany.
- Jan Pettersson & Lars Johansson, 2013. "Aid, Aid for Trade, and bilateral trade: An empirical study," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(6), pages 866-894, September.
- Debasri Mukherjee & Elsy Thomas Kizhakethalackal, 2013. "Empirics of health-aid, education and infant mortality: a semiparametric study," Applied Economics, Taylor & Francis Journals, vol. 45(22), pages 3137-3150, August.
- T. S. Breusch & A. R. Pagan, 1980.
"The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics,"
Review of Economic Studies,
Oxford University Press, vol. 47(1), pages 239-253.
- Breusch, T.S. & Pagan, A.R., "undated". "The Lagrange multiplier test and its applications to model specification in econometrics," CORE Discussion Papers RP 412, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Eskander Alvi & Debasri Mukherjee & Elias Kedir Shukralla, 2008. "Aid, Policies, and Growth in Developing Countries: A New Look at the Empirics," Southern Economic Journal, Southern Economic Association, vol. 74(3), pages 693-706, January.
- Oliver Morrissey, 2006. "Aid or Trade, or Aid and Trade?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 39(1), pages 78-88, 03.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-13-00396. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.