Aid to the Services Sector: Does it Affect Manufacturing Exports?

30 Pages Posted: 20 Apr 2016

See all articles by Esteban Ferro

Esteban Ferro

World Bank

Alberto Portugal-Perez

World Bank

John S. Wilson

World Bank - Development Research Group (DECRG)

Multiple version iconThere are 2 versions of this paper

Date Written: July 1, 2011

Abstract

This paper evaluates the impact of foreign aid to five service sectors (transportation, information and communications technologies, energy, banking/financial services, and business services) on exports of downstream manufacturing sectors in developing countries. To address the reverse causality between aid and exports, the analysis relies on an original identification strategy that exploits (i) the variation of aid flows to service sectors, and (ii) the variation of service-intensities across industrial sectors and countries using input-output data. The authors find a positive effect of aid to services, in general, on downstream manufacturing exports of developing countries across regions and income-level groups.

Keywords: Transport Economics Policy & Planning, Development Economics & Aid Effectiveness, Economic Theory & Research, Emerging Markets, E-Business

Suggested Citation

Ferro, Esteban and Portugal-Perez, Alberto and Wilson, John S., Aid to the Services Sector: Does it Affect Manufacturing Exports? (July 1, 2011). World Bank Policy Research Working Paper No. 5728, Available at SSRN: https://ssrn.com/abstract=1890022

Esteban Ferro (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Alberto Portugal-Perez

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

John S. Wilson

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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