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Evaluating Aid for Trade: A Survey of Recent Studies

Author

Listed:
  • Olivier Cadot
  • Ana Fernandes
  • Julien Gourdon
  • Aaditya Mattoo
  • Jaime de Melo

Abstract

The paper reviews recent evidence from a wide range of studies, recognizing that a multiplicity of approaches is needed to learn what works and what does not. The review concludes that there is some support for the emphasis on reducing trade costs through investments in hard infrastructure (like ports and roads) and soft infrastructure (like customs). But failure to implement complementary reform – especially the introduction of competition in transport services – may erode the benefits of these investments. Direct support to exporters does seem to lead to diversification across products and destinations, but it is not yet clear that these benefits are durable. In general, it is difficult to rely on cross-country studies to direct AFT. More rigorous impact evaluation (IE) is an under-utilized alternative, but situations of “clinical interventions” in trade are rare and adverse incentives (due to agency problems) and costs (due to the small size of project) are a hurdle in implementation.

Suggested Citation

  • Olivier Cadot & Ana Fernandes & Julien Gourdon & Aaditya Mattoo & Jaime de Melo, 2013. "Evaluating Aid for Trade: A Survey of Recent Studies," Working Papers 2013-33, CEPII research center.
  • Handle: RePEc:cii:cepidt:2013-33
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    References listed on IDEAS

    as
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    Citations

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    as


    Cited by:

    1. Jaime DE MELO & Marcelo OLARREAGA, 2017. "Trade Related Institutions and Development," Working Papers P199, FERDI.
    2. Lanz, Rainer & Roberts, Michael & Taal, Sainabou, 2016. "Reducing trade costs in LDCs: The role of Aid for Trade," WTO Staff Working Papers ERSD-2016-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. Dreher, Axel & Fuchs, Andreas & Langlotz, Sarah, 2018. "The Effects of Foreign Aid on Refugee Flows," CEPR Discussion Papers 12741, C.E.P.R. Discussion Papers.
    4. Hoekman, Bernard & Shingal, Anirudh, 2017. "Aid for Trade and International Transactions in Goods and Services," CEPR Discussion Papers 12250, C.E.P.R. Discussion Papers.
    5. 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.
    6. Roy, Martin, 2017. "The contribution of services trade policies to connectivity in the context of aid for trade," WTO Staff Working Papers ERSD-2017-12, World Trade Organization (WTO), Economic Research and Statistics Division.
    7. repec:bla:worlde:v:40:y:2017:i:10:p:2125-2152 is not listed on IDEAS
    8. repec:wsi:jicepx:v:08:y:2017:i:02:n:s1793993317500107 is not listed on IDEAS

    More about this item

    Keywords

    Aid for trade (AFT); trade performance; gravity; impact evaluation;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F35 - International Economics - - International Finance - - - Foreign Aid

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