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

12 Pages Posted: 16 Apr 2014

Multiple version iconThere are 2 versions of this paper

Date Written: April 2014

Abstract

The authors evaluated the impact of foreign aid to five services sectors (transportation, information and communications technologies (ICT), 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, they relied on an original identification strategy that exploits (i) the variation of aid flows to services sectors and (ii) the variation of service intensities across industrial sectors and countries using input–output data. They found a positive effect of aid to services, in general, on downstream manufacturing exports of developing countries across regions and income‐level groups.

Suggested Citation

Ferro, Esteban and Portugal-Perez, Alberto and Wilson, John S., Aid to the Services Sector: Does it Affect Manufacturing Exports? (April 2014). The World Economy, Vol. 37, Issue 4, pp. 530-541, 2014, Available at SSRN: https://ssrn.com/abstract=2425414 or http://dx.doi.org/10.1111/twec.12151

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 ( email )

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

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