IDEAS home Printed from https://ideas.repec.org/a/wsi/jicepx/v08y2017i03ns1793993317500144.html
   My bibliography  Save this article

Multilateral Trade Liberalization, Export Share in the International Trade Market and Aid for Trade

Author

Listed:
  • Sèna Kimm Gnangnon

    (World Trade Organization, 154 Rue de Lausanne, 1211 Genève 2, Switzerland)

Abstract

This paper adds to the existing literature on the macroeconomic determinants of Aid for Trade (AfT). It investigates the impact of both multilateral trade policy liberalization and the export share of AfT-recipient countries in global trade market on the AfT amounts that accrue to these countries. Using a panel dataset comprising 133 AfT-recipient-countries, over the period 1995–2015, the empirical analysis shows that both the impact of multilateral trade policy liberalization and of the recipient countries’ export share in the world trade market on AfT depend on recipient-countries’ level of development as well as on their domestic trade policy. Additionally, in the context of multilateral trade liberalization, donors tend to reward recipient-countries’ effort to secure a higher export share in the international trade market.

Suggested Citation

  • Sèna Kimm Gnangnon, 2017. "Multilateral Trade Liberalization, Export Share in the International Trade Market and Aid for Trade," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 1-35, October.
  • Handle: RePEc:wsi:jicepx:v:08:y:2017:i:03:n:s1793993317500144
    DOI: 10.1142/S1793993317500144
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1793993317500144
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S1793993317500144?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alesina, Alberto & Dollar, David, 2000. "Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
    2. Alberto Alesina & Beatrice Weder, 2002. "Do Corrupt Governments Receive Less Foreign Aid?," American Economic Review, American Economic Association, vol. 92(4), pages 1126-1137, September.
    3. Subhayu Bandyopadhyay & Javed Younas, 2009. "Do donors care about declining trade revenue from liberalization? an analysis of bilateral aid allocation," Review, Federal Reserve Bank of St. Louis, vol. 91(May), pages 141-154.
    4. Younas, Javed, 2008. "Motivation for bilateral aid allocation: Altruism or trade benefits," European Journal of Political Economy, Elsevier, vol. 24(3), pages 661-674, September.
    5. Gamberoni, Elisa & Newfarmer, Richard, 2009. "Aid for trade : matching potential demand and supply," Policy Research Working Paper Series 4991, The World Bank.
    6. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    7. Nunnenkamp, Peter & Öhler, Hannes, 2011. "Aid Allocation through Various Official and Private Channels: Need, Merit, and Self-Interest as Motives of German Donors," World Development, Elsevier, vol. 39(3), pages 308-323, March.
    8. Jean‐Claude Berthélemy, 2006. "Bilateral Donors’ Interest vs. Recipients’ Development Motives in Aid Allocation: Do All Donors Behave the Same?," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 179-194, May.
    9. Subhayu Bandyopadhyay & Howard J. Wall, 2007. "The determinants of aid in the post-cold war era," Review, Federal Reserve Bank of St. Louis, vol. 89(Nov), pages 533-548.
    10. Elisa Gamberoni & Richard Newfarmer, 2014. "Aid for Trade: Do Those Countries that Need it, Get it?," The World Economy, Wiley Blackwell, vol. 37(4), pages 542-554, April.
    11. Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
    12. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    13. 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.
    14. Wall, Howard J., 1995. "The allocation of official development assistance," Journal of Policy Modeling, Elsevier, vol. 17(3), pages 307-314, June.
    15. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    16. Sena Kimm Gnangnon, 2017. "The Impact of Multilateral Trade Liberalisation on Economic Development: Some Empirical Evidence," Economic Affairs, Wiley Blackwell, vol. 37(3), pages 397-410, October.
    17. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    18. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    19. Hyun‐Hoon Lee & Donghyun Park & Meehwa Shin, 2015. "Do Developing‐country WTO Members Receive More Aid for Trade (AfT)?," The World Economy, Wiley Blackwell, vol. 38(9), pages 1462-1485, September.
    20. Roland Kangni KPODAR & Maëlan LE GOFF, 2012. "Do Remittances Reduce Aid Dependency?," Working Papers P34, FERDI.
    21. Simon Feeny & Mark McGillivray, 2008. "What Determines Bilateral Aid Allocations? Evidence From Time Series Data," Review of Development Economics, Wiley Blackwell, vol. 12(3), pages 515-529, August.
    22. Mr. Maelan Le Goff & Mr. Kangni R Kpodar, 2011. "Do Remittances Reduce Aid Dependency?," IMF Working Papers 2011/246, International Monetary Fund.
    23. Stubbs, Thomas H. & Kentikelenis, Alexander E. & King, Lawrence P., 2016. "Catalyzing Aid? The IMF and Donor Behavior in Aid Allocation," World Development, Elsevier, vol. 78(C), pages 511-528.
    24. Trumbull, William N & Wall, Howard J, 1994. "Estimating Aid-Allocation Criteria with Panel Data," Economic Journal, Royal Economic Society, vol. 104(425), pages 876-882, July.
    25. Dollar, David, 1992. "Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 523-544, April.
    26. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    27. Ratnaike, Yasanji C., 2012. "Is there an empirical link between trade liberalisation and export performance?," Economics Letters, Elsevier, vol. 117(1), pages 375-378.
    28. Constantine Boussalis & Caryn Peiffer, 2011. "Health, Need and Politics: The Determinants of Bilateral HIV/AIDS Assistance," Journal of Development Studies, Taylor & Francis Journals, vol. 47(12), pages 1798-1825.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gnangnon, Sèna Kimm, 2019. "Trade Policy Space and Foreign Direct Investment Inflows," EconStor Preprints 196149, ZBW - Leibniz Information Centre for Economics.
    2. Sèna Kimm Gnangnon, 2024. "Do Donors provide higher Aid for Trade flows to Recipient-Countries that Diversify Export Products or Is It the Other Way Around?," Arthaniti: Journal of Economic Theory and Practice, , vol. 23(1), pages 7-32, June.
    3. Sena Kimm Gnangnon, 2020. "A Note on the Algebra of Multiple Exchange Rates," Economics Bulletin, AccessEcon, vol. 40(1), pages 316-337.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sèna Kimm Gnangnon, 2016. "Market Access of OECD Donor Countries and Their Supply of Aid for Trade," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 1-38, February.
    2. Gnangnon, Sèna Kimm, 2017. "Structural economic vulnerability, openness and bilateral development aid flows," Economic Analysis and Policy, Elsevier, vol. 53(C), pages 77-95.
    3. Sèna Kimm Gnangnon, 2020. "Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis," South Asian Journal of Macroeconomics and Public Finance, , vol. 9(1), pages 22-57, June.
    4. Stubbs, Thomas H. & Kentikelenis, Alexander E. & King, Lawrence P., 2016. "Catalyzing Aid? The IMF and Donor Behavior in Aid Allocation," World Development, Elsevier, vol. 78(C), pages 511-528.
    5. Sena Kimm Gnangnon & Jean-François Brun, 2018. "Impact of Multilateral Trade Liberalization on Resource Revenue," Economies, MDPI, vol. 6(4), pages 1-19, November.
    6. Sèna Kimm Gnangnon, 2018. "Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid Allocation," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 15(2), pages 249-276, December.
    7. Brun, Jean-François & Gnangnon, Sèna Kimm, 2017. "Does trade openness contribute to driving financing flows for development?," WTO Staff Working Papers ERSD-2017-06, World Trade Organization (WTO), Economic Research and Statistics Division.
    8. Gnangnon, Sèna Kimm, 2020. "Aid for Trade flows and Poverty Reduction in Recipient-Countries," EconStor Preprints 213807, ZBW - Leibniz Information Centre for Economics.
    9. Gaibulloev, Khusrav & Younas, Javed, 2018. "Untying the motives of giving grants vs. loans," European Journal of Political Economy, Elsevier, vol. 51(C), pages 1-14.
    10. Gnangnon Sèna Kimm, 2017. "Empirical Evidence on the Impact of Multilateral Trade Liberalization on Domestic Trade Policy," Global Economy Journal, De Gruyter, vol. 17(3), pages 1-14, September.
    11. Sèna Kimm Gnangnon, 2019. "Aid for Trade and Recipient Countries’ Export Structure: Does Trade Policy Liberalisation Matter?," Arthaniti: Journal of Economic Theory and Practice, , vol. 18(1), pages 56-85, June.
    12. Ahsan Kibria & Reza Oladi & Ryan Bosworth, 2021. "Political economy of aid allocation: The case of Arab donors," The World Economy, Wiley Blackwell, vol. 44(8), pages 2460-2495, August.
    13. Hyun‐Hoon Lee & Donghyun Park & Meehwa Shin, 2015. "Do Developing‐country WTO Members Receive More Aid for Trade (AfT)?," The World Economy, Wiley Blackwell, vol. 38(9), pages 1462-1485, September.
    14. Nagae, Akira & Katayama, Hajime & Takase, Koichi, 2022. "Donor aid allocation and accounting standards of recipients," Economic Modelling, Elsevier, vol. 106(C).
    15. Bandyopadhyay, Subhayu & Lahiri, Sajal & Younas, Javed, 2011. "Should Easier Access to International Credit Replace Foreign Aid?," IZA Discussion Papers 6024, Institute of Labor Economics (IZA).
    16. Dithmer, Jan & Abdulai, Awudu, 2017. "Does trade openness contribute to food security? A dynamic panel analysis," Food Policy, Elsevier, vol. 69(C), pages 218-230.
    17. Sèna Kimm Gnangnon, 2017. "Multilateral Trade Liberalisation and Foreign Direct Investment Inflows," Economic Affairs, Wiley Blackwell, vol. 37(1), pages 66-84, February.
    18. Barthel, Fabian & Neumayer, Eric & Nunnenkamp, Peter & Selaya, Pablo, 2014. "Competition for Export Markets and the Allocation of Foreign Aid: The Role of Spatial Dependence among Donor Countries," World Development, Elsevier, vol. 64(C), pages 350-365.
    19. Gnangnon, Sèna Kimm, 2019. "Trade Policy Space and Foreign Direct Investment Inflows," EconStor Preprints 196149, ZBW - Leibniz Information Centre for Economics.
    20. Balázs Szent-Iványi, 2015. "Are Democratising Countries Rewarded with Higher Levels of Foreign Aid?," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(4), pages 593-615, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:jicepx:v:08:y:2017:i:03:n:s1793993317500144. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/jicep/jicep.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.