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Where to Spend the Next Million? Applying Impact Evaluation to Trade Assistance

  • Olivier Cadot
  • Ana M. Fernandes
  • Julien Gourdon
  • Aaditya Mattoo

Trade policy has changed fundamentally since the days of structural adjustment and economy-wide trade reforms. Partly in reaction to the uneven results of trade policy reforms, the focus has shifted to more targeted interventions aimed at reducing trade costs and addressing market failures that inhibit exports. Significant national resources and international assistance are now devoted to trade facilitation and export promotion, and the international development community has galvanized around a new 'aid-for-trade' (AfT) mantra as a means of helping low-income countries integrate into the global economy. The rest of this chapter is organized as follows: in section two the report discusses the changing nature of trade policy. In section three the report reviews the available evidence on the impact of trade assistance. In section four the report considers a detailed menu of trade-related interventions and discusses the challenges to their evaluation. In section five the report addresses the data issues crucial to impact evaluation. Finally, in section six the report look at the future challenges to doing Independent Evaluation (IE) in trade assistance.

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This book is provided by The World Bank in its series World Bank Publications with number 16358 and published in 2011.
ISBN: 978-1-907142-39-0
Handle: RePEc:wbk:wbpubs:16358
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  1. Raghuram Rajan & Arvind Subramanian, 2005. "Aid and Growth; What Does the Cross-Country Evidence Really Show?," IMF Working Papers 05/127, International Monetary Fund.
  2. Trefler, Daniel & Zhu, Susan Chun, 2010. "The structure of factor content predictions," Journal of International Economics, Elsevier, vol. 82(2), pages 195-207, November.
  3. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
  4. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2004. "On The Empirics of Foreign Aid and Growth," Economic Journal, Royal Economic Society, vol. 114(496), pages F191-F216, 06.
  5. Luis Angeles & Kyriakos C. Neanidis, 2006. "Aid Effectiveness: The Role of the Local Elite," The School of Economics Discussion Paper Series 0633, Economics, The University of Manchester.
  6. François Bourguignon & Mark Sundberg, 2007. "Aid Effectiveness – Opening the Black Box," American Economic Review, American Economic Association, vol. 97(2), pages 316-321, May.
  7. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
  8. Thierry Tressel & Alessandro Prati, 2006. "Aid Volatility and Dutch Disease; Is There a Role for Macroeconomic Policies?," IMF Working Papers 06/145, International Monetary Fund.
  9. Raghuram G. Rajan & Luigi Zingales, . "Financial Dependence and Growth," CRSP working papers 344, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
  10. Oecd, 2002. "Aid volume, channels and allocations for poverty reduction," OECD Journal on Development, OECD Publishing, vol. 3(3), pages 33-46.
  11. SUWA-EISENMANN Akiko & VERDIER Thierry, 2007. "Aid and trade," Research Unit Working Papers 0709, Laboratoire d'Economie Appliquee, INRA.
  12. Arellano, Cristina & Bulír, Ales & Lane, Timothy & Lipschitz, Leslie, 2009. "The dynamic implications of foreign aid and its variability," Journal of Development Economics, Elsevier, vol. 88(1), pages 87-102, January.
  13. Markus Bruckner, 2011. "On the Simultaneity Problem in the Aid and Growth Debate," School of Economics Working Papers 2011-01, University of Adelaide, School of Economics.
  14. Helble, Matthias & Mann, Catherine & Wilson, John S., 2009. "Aid for trade facilitation," Policy Research Working Paper Series 5064, The World Bank.
  15. Younger, Stephen D., 1992. "Aid and the Dutch disease: Macroeconomic management when everybody loves you," World Development, Elsevier, vol. 20(11), pages 1587-1597, November.
  16. Mitton, Todd, 2008. "Institutions and concentration," Journal of Development Economics, Elsevier, vol. 86(2), pages 367-394, June.
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