Has Aid for Trade Increased Recipient Exports? The Impact of US AfT Allocations 1999-2008

35 Pages Posted: 23 Aug 2010

See all articles by Steven E. Finkel

Steven E. Finkel

University of Pittsburgh - Department of Political Science

Juan Rodriquez-Zepeda

affiliation not provided to SSRN

Lena Surzhko-Harned

affiliation not provided to SSRN

Aníbal Pérez Liñán

University of Notre Dame

David H. Bearce

University of Colorado at Boulder

Date Written: August 22, 2010

Abstract

After a decade of Aid for Trade (AfT) allocations, we can now begin to assess whether this new development strategy has been effective. Focusing on the short-term goal of export growth, we examine whether AfT from the US government promoted exports within recipient national economies over the period 1999-2008. Our results suggest that a $1 dollar increase in total US AfT has been associated with about a $65 increase in recipient exports two years later. We also show that the export effect of US AfT has not been confined to the US market and is driven primarily by exports to the rest of the world. In addition, we show that US AfT has been effective in reaching more needy countries as the substantive effect of US aid for trade has been larger in lesser developed, landlocked, and more distant recipient countries. Finally, our results also suggest that US AfT has produced this positive export effect by developing private sector trade practices and by improving public sector trade policies, but not by upgrading trade infrastructure within recipient national economies.

Suggested Citation

Finkel, Steven E. and Rodriquez-Zepeda, Juan and Surzhko-Harned, Lena and Pérez Liñán, Aníbal and Bearce, David H., Has Aid for Trade Increased Recipient Exports? The Impact of US AfT Allocations 1999-2008 (August 22, 2010). Available at SSRN: https://ssrn.com/abstract=1663325 or http://dx.doi.org/10.2139/ssrn.1663325

Steven E. Finkel

University of Pittsburgh - Department of Political Science ( email )

4L01 Posvar Hall
Pittsburgh, PA 15260
United States
412-648-7283 (Phone)

Juan Rodriquez-Zepeda

affiliation not provided to SSRN ( email )

No Address Available

Lena Surzhko-Harned

affiliation not provided to SSRN ( email )

No Address Available

Aníbal Pérez Liñán

University of Notre Dame

Department of Political Science
2060 Jenkins Nanovic Halls
Notre Dame, IN 46556
United States

David H. Bearce (Contact Author)

University of Colorado at Boulder ( email )

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