Foreign Aid, Exports and Development in Euromed
This paper investigates the link between foreign aid and exports between the two shores of the Mediterranean. The main hypothesis is that the Euro-Mediterranean Process should promote not only trade but also stronger links between the European Union (EU) and the Middle East and North Africa (MENA). Hence, we expect development aid to have a positive impact on exports, which could also intensify the aid-trade relationship. In particular, we expect to find higher trade volumes in both directions after the process started in 1995 and intensified in the late 1990s and early 2000s, when several bilateral free trade agreements were signed. A gravity model augmented with bilateral and multilateral aid and trade regime variables is estimated for exports and imports from recipient countries to donor countries for the period 1988 to 2007 using advanced panel data techniques. Our method addresses the endogeneity bias of the trade regime/economic integration agreement (EIA) variable, assuming that decisions to form or enlarge EIAs are slow-moving relative to trade flows.
|Date of creation:||08 May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Platz des Göttinger Sieben 3, 37073 Göttingen|
Phone: 0049-551-39 81 72
Fax: 0049-551-39 81 73
Web page: http://www.iai.wiwi.uni-goettingen.de
More information through EDIRC
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.:
- Joong Shik Kang & Alessandro Prati & Alessandro Rebucci, 2010.
"Aid, Exports, and Growth: A Time-Series Perspective on the Dutch Disease Hypothesis,"
IDB Publications (Working Papers)
6866, Inter-American Development Bank.
- Joong Shik Kang & Alessandro Prati & Alessandro Rebucci, 2012. "Aid, Exports, and Growth: a Time-Series Perspective on the Dutch Disease Hypothesis," Review of Economics and Institutions, Università di Perugia, vol. 3(2).
- Joong S Kang & Alessandro Prati & Alessandro Rebucci, 2013. "Aid, Exports, and Growth; A Time-Series Perspective on the Dutch Disease Hypothesis," IMF Working Papers 13/73, International Monetary Fund.
- Joong Shik Kang & Alessandro Prati & Alessandro Rebucci, 2010. "Aid, Exports, and Growth: A Time-Series Perspective on the Dutch Disease Hypothesis," Research Department Publications 4678, Inter-American Development Bank, Research Department.
- Arvind Subramanian & Raghuram Rajan, 2005.
"What Undermines Aidâ€™s Impact on Growth?,"
IMF Working Papers
05/126, International Monetary Fund.
- Rajan, Raghuram G. & Subramanian, Arvind, 2011.
"Aid, Dutch disease, and manufacturing growth,"
Journal of Development Economics,
Elsevier, vol. 94(1), pages 106-118, January.
- Hristos Doucouliagos & Martin Paldam, 2005.
"Aid Effectiveness on Accumulation. A Meta Study,"
Economics Working Papers
2005-12, Department of Economics and Business Economics, Aarhus University.
- Felicitas Nowak-Lehmann & Axel Dreher & Dierk Herzer & Stephan Klasen & Inmaculada Martínez-Zarzoso, 2012. "Does foreign aid really raise per capita income? A time series perspective," Canadian Journal of Economics, Canadian Economics Association, vol. 45(1), pages 288-313, February.
- 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.
- John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
- Cecília Hornok, 2010. "Trade-Enhancing EU Enlargement and the Resurgence of East-East Trade," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 79-94.
- Kemp, Murray C. & Wong, Kar-yiu, 1993. "Paradoxes associated with the administration of foreign aid," Journal of Development Economics, Elsevier, vol. 42(1), pages 197-204, October.
- Hristos Doucouliagos & Martin Paldam, 2005. "Aid Effectiveness on Growth. A Meta Study," Economics Working Papers 2005-13, Department of Economics and Business Economics, Aarhus University.
- José Vicente Blanes Cristóbal & Juliette Milgram Baleix, 2010. "Impacto de la liberalización comercial de Marruecos sobre las exportaciones por regiones," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 18(1), pages 63-90, Spring.
- Persson, Maria & Wilhelmsson, Fredrik, 2006. "Assessing the Effects of EU Trade Preferences for Developing Countries," Working Papers 2006:4, Lund University, Department of Economics, revised 26 Jun 2006.
When requesting a correction, please mention this item's handle: RePEc:got:iaidps:218. 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: (Sabine Jaep)
If references are entirely missing, you can add them using this form.