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Evaluating Aid for Trade: A Survey of Recent Studies

Author

Listed:
  • Julien Gourdon

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Olivier Cadot
  • Ana Fernandes
  • 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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Julien Gourdon & Olivier Cadot & Ana Fernandes & Aaditya Mattoo & Jaime de Melo, 2014. "Evaluating Aid for Trade: A Survey of Recent Studies," Post-Print hal-03410093, HAL.
    • Handle: RePEc:hal:journl:hal-03410093
    DOI: 10.1111/twec.12138
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    JEL classification:

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

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