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The Impact of Aid for Trade Facilitation on the Costs of Trading

23 Pages Posted: 7 Jul 2010 Last revised: 15 Sep 2010

Matthias Busse

Ruhr-University Bochum; HWWI - Hamburg Institute of International Economics

Ruth Hoekstra

Ruhr Universität Bochum - Faculty of Economics

Jens Koeniger

Ruhr Universität Bochum - Faculty of Economics

Date Written: 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.

Keywords: Trade Facilitation, Aid for Trade, Trade Costs

JEL Classification: F13, F35, O19

Suggested Citation

Busse, Matthias and Hoekstra, Ruth and Koeniger, Jens, The Impact of Aid for Trade Facilitation on the Costs of Trading (September 2010). Available at SSRN: https://ssrn.com/abstract=1635884 or http://dx.doi.org/10.2139/ssrn.1635884

Matthias Busse (Contact Author)

Ruhr-University Bochum ( email )

Faculty of Management and Economics, GC 3/145
D-44780 Bochum, DE 44780
Germany

HWWI - Hamburg Institute of International Economics

Heimhuder Str. 71
Hamburg, 20148
Germany

Ruth Hoekstra

Ruhr Universität Bochum - Faculty of Economics ( email )

Ruhr University of Bochum
Faculty of Economics
D-44780 Bochum, DE 44780
Germany

Jens Koeniger

Ruhr Universität Bochum - Faculty of Economics ( email )

Ruhr University of Bochum
Faculty of Economics
D-44780 Bochum, DE 44780
Germany

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