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Impact of Aid for Trade to Agricultural Development and Trade

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  • Ahn, Soojung
  • Lee, Sang Hyeon

Abstract

Aid for Trade (AfT) has emerged as a significant mechanism for development of developing countries by helping them to participate in the global value chain. Grants on agricultural part in AfT has been gradually increased since 2002 and invested in various ways from agrarian reform, agricultural education and training to plant and post-harvest protection and pest control. In spite of the increase, there were only few researches on significance between AfT and agricultural development. This research aims to evaluate whether AfT has significant relation with agricultural development and trade. It also examines whether there is heterogeneity in the response to AfT across recipient countries with different national characteristics. We conducted a subgroup analysis using a panel tobit model. Also, UN COMTRADE(PC-TAS) for the export data, the World Bank data for agricultural GDP, OECD QWIDS for AfT data from 2002 to 2013 were used. Our results show that AfT in agriculture has increased both agricultural GDP and exports of the recipient countries. This study also found the most effective form of AfT in agriculture which differs from country to country depending on the characteristics of each country.

Suggested Citation

  • Ahn, Soojung & Lee, Sang Hyeon, 2016. "Impact of Aid for Trade to Agricultural Development and Trade," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230119, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea16:230119
    DOI: 10.22004/ag.econ.230119
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    References listed on IDEAS

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    International Development; International Relations/Trade;

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