IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00729834.html
   My bibliography  Save this paper

Aid for trade in developing countries: complex linkages for real effectiveness

Author

Listed:
  • Marilyne Huchet

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Anna Lipchitz

    (ONU_Mission permanente de la France - ONU_Mission permanente de la France)

  • Audrey Rousson

    (AFD - Agence française de développement)

Abstract

L'aide au commerce, présentée comme un nouvel outil de développement prometteur, vise à soutenir l'intégration commerciale des pays en développement. Il manque néanmoins à cette aide, pour asseoir son efficacité et respecter les engagements politiques des donateurs, une dimension stratégique. D'un point de vue théorique, cette étude présente les différentes catégories d'aide au commerce et analyse les relations entre IDE, aide au commerce et développement. Elle propose également une typologie des besoins liés au commerce pour un panel de pays afin de guider les bailleurs de fonds dans la définition de leurs stratégies d'offre. Cette typologie met en avant des disparités aux niveaux national et régional, ainsi qu'une faible intégration régionale. Les besoins liés au commerce, particulièrement forts pour les régions de l'Afrique de l'Ouest et de l'Afrique de l'Est, sont importants dans le secteur des infrastructures. Cet article souligne également l'importance d'affiner la formulation des demandes réelles du côté des bénéficiaires, de structurer l'offre des bailleurs en fonction de leurs propres compétences et d'approfondir la coordination entre les différentes parties prenantes, dont acteurs publics et acteurs privés. Enfin, une libéralisation plus poussée des échanges ne suffira pas, à elle seule, à enclencher une croissance forte et à améliorer la répartition géographique et sectorielle des IDE. Des facteurs comme la stabilité politique, l'environnement des entreprises, l'infrastructure matérielle, les institutions et le capital humain sont également des dimensions fondamentales. En particulier, une cohérence entre politiques commerciales, sectorielles, macroéconomiques et fiscales est impérative, pour chaque pays et chaque région mais également entre pays industrialisés et PED. / Aid for trade is intended to support the integration of developing countries into the world trading system. Although this form of aid is being hailed as a promising new development tool, it lacks the strategic dimension that it needs if it is to be truly effective and fulfil donors' policy commitments. From a theoretical perspective, this paper presents the various aid-for-trade categories and analyses the linkages between foreign direct investment, aid for trade and development. It also presents a typology of trade-related needs for a panel of countries, to serve as a guide for donors in formulating their aid supply strategies. This typology reveals a number of disparities between countries and regions, as well as a low level of regional integration. Trade-related needs are particularly significant in West Africa and East Africa, and substantial in the infrastructure sector. This paper also stresses the importance of refining the formulation of actual demand by beneficiaries, structuring the aid supply in accordance with donors' specific areas of expertise and enhancing coordination among the various stakeholders, both public and private. Lastly, further trade liberalisation will not by itself suffice to generate strong growth and improve the geographical and sectoral distribution of foreign direct investment. Factors such as political stability, the business climate, physical infrastructure, institutions and human capital also play a fundamental role. Of particular importance is the coherence of trade, sectoral, macroeconomic and tax policies, not only within each country and region but also between industrialised and developing countries.

Suggested Citation

  • Marilyne Huchet & Anna Lipchitz & Audrey Rousson, 2008. "Aid for trade in developing countries: complex linkages for real effectiveness," Post-Print hal-00729834, HAL.
  • Handle: RePEc:hal:journl:hal-00729834
    Note: View the original document on HAL open archive server: https://institut-agro-rennes-angers.hal.science/hal-00729834
    as

    Download full text from publisher

    File URL: https://institut-agro-rennes-angers.hal.science/hal-00729834/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    2. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    3. Norbert Wilson & Joyce Cacho, 2007. "Linkage Between foreign Direct Investment, Trade and Trade Policy: An Economic Analysis with Application to the Food Sector in OECD Countries and Case Studies in Ghana, Mozambique, Tunisia and Uganda," OECD Trade Policy Papers 50, OECD Publishing.
    4. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing The Potential Benefit Of Trade Facilitation: A Global Perspective," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 8, pages 121-160, World Scientific Publishing Co. Pte. Ltd..
    5. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    6. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    7. Wilson, Norbert L.W., 2006. "Linkages amongst Foreign Direct Investment, Trade and Trade Policy: An Economic Analysis with Applications to the Food Sector," 2006 Annual meeting, July 23-26, Long Beach, CA 21064, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. James A. Robinson & Daron Acemoglu, 2000. "Political Losers as a Barrier to Economic Development," American Economic Review, American Economic Association, vol. 90(2), pages 126-130, May.
    9. Jean-Pierre Cling, 2006. "Commerce, croissance, pauvreté et inégalités dans les PED : une revue de littérature," Working Papers DT/2006/07, DIAL (Développement, Institutions et Mondialisation).
    10. repec:dau:papers:123456789/4373 is not listed on IDEAS
    11. Ronald Mendoza & Chandrika Bahadur, 2002. "Toward Free and Fair Trade: A Global Public Good Perspective," Challenge, Taylor & Francis Journals, vol. 45(5), pages 21-62.
    12. Douglas C. Lippoldt & Przemyslaw Kowalski, 2005. "Trade Preference Erosion: Expanded Assessment of Countries at Risk of Welfare Losses," OECD Trade Policy Papers 20, OECD Publishing.
    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. Rasmane Ouedraogo & Windemanegda Sandrine Sourouema & Pam Zahonogo, 2018. "Capital Inflows and Exports Diversification in Sub‐Saharan Africa during the MDGs Era," African Development Review, African Development Bank, vol. 30(1), pages 1-18, March.
    2. Shwe Sin Oo & Masaru Ichihashi, 2015. "How Does Aid For Trade Contribute To ASEAN`s Trading?," IDEC DP2 Series 5-2, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    3. Fahmida Khatun & Samina Hossain & Nepoleon Dewan, 2013. "Evaluating Aid for Trade on the Ground: Lessons from Bangladesh," CPD Report 5, Centre for Policy Dialogue (CPD).
    4. Mariana Vijil & Laurent Wagner, 2012. "Does Aid for Trade Enhance Export Performance? Investigating the Infrastructure Channel," The World Economy, Wiley Blackwell, vol. 35(7), pages 838-868, July.
    5. Martinez-Zarzoso, Inmaculada & Nowak-Lehmann D., Felicitas & Rehwald, Kai, 2014. "Is aid for trade effective? A quantile regression approach," University of Göttingen Working Papers in Economics 210, University of Goettingen, Department of Economics.
    6. Stephan Klasen & Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann & Matthias Bruckner, 2021. "Does the designation of least developed country status promote exports?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(2), pages 157-177, February.
    7. Alberto Behar & Philip Manners & Benjamin D. Nelson, 2013. "Exports and International Logistics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(6), pages 855-886, December.
    8. 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.
    9. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D. & Kai Rehwald, 2017. "Is aid for trade effective? A panel quantile regression approach," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 175-203, November.
    10. Beata Udvari, 2016. "The Aid for Trade initiative and the export performance of the Iberian EU-countries," IWE Working Papers 225, Institute for World Economics - Centre for Economic and Regional Studies.

    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. Andrea Asoni, 2008. "Protection Of Property Rights And Growth As Political Equilibria," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 953-987, December.
    2. Richard Bluhm & Adam Szirmai, 2011. "Institutions, Inequality and Growth: A review of theory and evidence on the institutional determinants of growth and inequality," Papers inwopa634, Innocenti Working Papers.
    3. Mehmet Ugur & David Sunderland, 2011. "Does Economic Governance Matter? New Contributions to the Debate," Chapters, in: Mehmet Ugur & David Sunderland (ed.), Does Economic Governance Matter?, chapter 1, Edward Elgar Publishing.
    4. Devashish Mitra & Beyza Ural, 2009. "Indian manufacturing: A slow sector in a rapidly growing economy," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(1), pages 205-205.
    5. Thomas Barnebeck Andersen & Carl-Johan Dalgaard, 2006. "Cross-Border Flows of People, Technology Diffusion and Aggregate Productivity," DEGIT Conference Papers c011_006, DEGIT, Dynamics, Economic Growth, and International Trade.
    6. Julian P. Christ & Patricia Hofmann, 2010. "International Openness and Patent Activity: First Descriptive Results Very preliminary draft," DEGIT Conference Papers c015_055, DEGIT, Dynamics, Economic Growth, and International Trade.
    7. Vieira, Flávio & MacDonald, Ronald & Damasceno, Aderbal, 2012. "The role of institutions in cross-section income and panel data growth models: A deeper investigation on the weakness and proliferation of instruments," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 127-140.
    8. Lederman, Daniel & Saenz, Laura, 2005. "Innovation and development around the world, 1960-2000," Policy Research Working Paper Series 3774, The World Bank.
    9. Löschel, Andreas & Pothen, Frank & Schymura, Michael, 2015. "Peeling the onion: Analyzing aggregate, national and sectoral energy intensity in the European Union," Energy Economics, Elsevier, vol. 52(S1), pages 63-75.
    10. Ola Olsson, 2005. "Geography and institutions: Plausible and implausible linkages," Journal of Economics, Springer, vol. 10(1), pages 167-194, December.
    11. Ahmet Faruk AYSAN & Mustapha Kamel NABLI & Marie‐Ange VÉGANZONÈS‐VAROUDAKIS, 2007. "Governance Institutions And Private Investment: An Application To The Middle East And North Africa," The Developing Economies, Institute of Developing Economies, vol. 45(3), pages 339-377, September.
    12. Diego A. Cerdeiro & Andras Komaromi, 2021. "Trade and income in the long run: Are there really gains, and are they widely shared?," Review of International Economics, Wiley Blackwell, vol. 29(4), pages 703-731, September.
    13. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    14. Andrei A. Levchenko, 2013. "International Trade and Institutional Change," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 29(5), pages 1145-1181, October.
    15. an de Meulen, Philipp, 2011. "Labor Heterogeneity and the Risk of Expropriation in Less Developed Countries," Ruhr Economic Papers 298, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Jeffrey A. Frankel & Shang-Jin Wei, 2004. "Managing Macroeconomic Crises," NBER Working Papers 10907, National Bureau of Economic Research, Inc.
    17. Badinger, Harald, 2008. "Trade policy and productivity," European Economic Review, Elsevier, vol. 52(5), pages 867-891, July.
    18. Dana C. Andersen, 2016. "Credit Constraints, Technology Upgrading, and the Environment," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 283-319.
    19. Prskawetz, A. & Kogel, T. & Sanderson, W.C. & Scherbov, S., 2007. "The effects of age structure on economic growth: An application of probabilistic forecasting to India," International Journal of Forecasting, Elsevier, vol. 23(4), pages 587-602.
    20. Dawood Mamoon & S. Mansoob Murshed, 2006. "Trade Policy, Openness, Institutions," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(1), pages 99-119.

    More about this item

    Keywords

    COMMERCE; PAYS EN DEVELOPPEMENT;

    Statistics

    Access and download statistics

    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:hal:journl:hal-00729834. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.