Aid for Trade and Sustainable Development in Least-Developed African Countries
In The Palgrave Handbook of Africa’s Economic Sectors, edited by Wamboye, E.F., Fayissa, B., 531-550. Palgrave Macmillan, Cham, 2022. https://doi.org/10.1007/978-3-030-75556-0_20
Posted: 24 Jan 2023
Date Written: May 27, 2022
Abstract
Both neoclassical economic theory and the economics of industrial development praise the export sector due to its positive effects on industrial development. While neoclassical economic theory favors international trade because it facilitates productivity improvement, knowledge diffusion, and higher R&D investment, industrial economists stress the importance of export-led growth for its contribution to generating a more diversified industrial base. In accordance with these insights, Aid-for-Trade (AfT) promotes less-developed countries’ integration into the global economy through supporting their trade-related infrastructure investments. Against this backdrop, this chapter shows that AfT can be instrumental in facilitating industrial development and building export capacity; thereby contributing to sustainable development in least-developed African countries.
Keywords: Aid for Trade, Industrial Policy, Export Capacity, Sustainable Development
Suggested Citation: Suggested Citation