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The Impact of Aid for Trade Facilitation on the Costs of TradingMatthias BusseRuhr-University Bochum; HWWI - Hamburg Institute of International Economics Ruth HoekstraRuhr Universität Bochum - Faculty of Economics Jens KoenigerRuhr Universität Bochum - Faculty of Economics September 2010 Abstract: There have been ongoing discussions within the WTO Doha Round on Trade Facilitation and the wider Aid for Trade agenda to assist developing countries in reducing behind-the-border restrictions and to help them benefit from trade reform. Our paper contributes to this debate by analyzing the impact of foreign aid spent on Aid for Trade and Trade Facilitation on the costs of trading. In our empirical investigation, we conduct a panel data estimation for a sample of 99 developing countries for the period 2004-2009. Overall, we find that our aid measures have a negative effect on the costs of trading.
Number of Pages in PDF File: 23 Keywords: Trade Facilitation, Aid for Trade, Trade Costs JEL Classification: F13, F35, O19 working papers seriesDate posted: July 7, 2010 ; Last revised: September 15, 2010Suggested CitationContact Information
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