Institutional quality and the effectiveness of aid for trade

Tadesse, Bedassa; Shukralla, Elias; Fayissa, Bichaka

doi:10.1080/00036846.2019.1589644

Cited by 8 publications

(12 citation statements)

References 22 publications

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“…There was even a study that involved only one country, namely, the Case of Nepal (Brazys and Elkink, 2020). On the other hand, several analyses have involved both developing and developed countries (Hühne et al , 2014; Lee and Ries, 2016; Hoekman and Shingal, 2020), whereas many studies have covered exclusively the developing countries (Calì and te Velde, 2011; Tadesse et al , 2019). Nevertheless, given the essence of AfT, a considerable number of studies have looked at both developing and least developed economies (Ghimire et al , 2016; Gnangnon and Roberts, 2017; Gnangnon, 2018f, 2019c, 2020a).…”

Section: Discussion and Findingsmentioning

confidence: 99%

“…4.1.3 Data sources. In regard to AfT data, most studies have used the OECD CRS database (Lee and Ries, 2016;Martínez-Zarzoso et al, 2017;Tadesse et al, 2019;Gnangnon, 2020b), with a time horizon starting from 2002 (Calì and te Velde, 2011;Vijil and Wagner, 2012;Martínez-Zarzoso et al, 2017;Gnangnon, 2018bGnangnon, , 2019dGnangnon and Ramirez, 2020). In addition, preference has been given to data on AfT disbursements rather than commitments.…”

Section: Discussion and Findingsmentioning

confidence: 99%

“…The study proposed the need to further strengthen the initiative. In a similar context, the same authors Tadesse et al (2019) investigated the potential difference in the effectiveness of AfT on bilateral trade costs based on the institutional quality of the recipient countries. The results from 133 developing countries for the year 2002–2014 indicated that the institutional quality substantially impacts the degree to which AfT lessens the bilateral trade costs.…”

Section: Aid For Trade Effectivenessmentioning

confidence: 99%

See 2 more Smart Citations

Aid for trade initiative 16 years on: lessons learnt from the empirical literature and recommendations for future directions

Benziane

Law

Rosland

et al. 2022

JITLP

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Purpose The purpose of this paper is to present a review of empirical evidence on the effectiveness of Aid for Trade (AfT) inflows and recommend new areas of interest concerning the initiative other than its effect on trade performance. Design/methodology/approach This paper reviews a sample of 55 studies over the past 11 years. Besides, this paper categorised the reviewed empirical studies into three groups: the works concentrating on the trade performance effect; the works focusing on other economic factors effect; and the works concerning the allocation effect of these inflows. This paper also offers a detailed analysis of the multiple empirical methods, sources of data, coverage of the countries and forms of AfT inflows used in the reviewed literature. Findings Key findings indicated that AfT has overall produced a successful impact as reported by most studies. Moreover, it has been highlighted that the effectiveness of AfT may differ relying on multiple indicators: the category of AfT disbursements; income of the recipient country; the recipient country's geographical region; the amount of aggregate AfT as well as its main categories; the policy regulation and institutional quality of the recipient country; and the degree of liberalisation in the recipient country. Originality/value This paper is special in that it is the first to publish a comprehensive narrative analysis of 55 empirical pieces of evidence on the effectiveness of AfT over the past 11 years. It is also the first paper to review the previous literature regarding the effectiveness of AfT inflows on other non-trade outcomes, as well as trade outcomes in one single study. The outcome of the survey reveals new areas of interest in the effectiveness of AfT aside from trade performance.

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Section: Discussion and Findingsmentioning

confidence: 99%

Section: Discussion and Findingsmentioning

confidence: 99%

Section: Aid For Trade Effectivenessmentioning

confidence: 99%

See 1 more Smart Citation

Aid for trade initiative 16 years on: lessons learnt from the empirical literature and recommendations for future directions

Benziane

Law

Rosland

et al. 2022

JITLP

View full text Add to dashboard Cite

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“…The literature has demonstrated that higher AfT ows -including AfT ows for the build-up of economic infrastructure, AfT ows for strengthening productive capacities and AfT ows for trade policy and regulation -are associated with lower trade costs in recipient countries (e.g., Busse et al, 2012;Calì and te Velde, 2011;Gnangnon, 2018;Helble et al, 2012;Hoekman and Nicita, 2010;OECD/WTO, 2015;Tadesse et al, 2019;Tadesse et al, 2021;Vijil and Wagner, 2012).…”

Section: Theoretical Discussion On the Effect Of Aft Flows On The Inf...mentioning

confidence: 99%

Do Aid for Trade Flows Help Reduce the Shadow Economy in Recipient Countries?

Gnangnon

2022

Preprint

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The present analysis has assessed the effect of Aid for Trade (AfT) flows on the shadow economy using an unbalanced panel dataset of 106 countries over the period from 2002 to 2015. Empirical results obtained by means of the two-step system generalized method of moments, show that higher AfT flows are associated with a fall in the size of the shadow economy, with less developed countries experiencing a greater negative effect of AfT flows on the shadow economy than relatively advanced countries among recipient countries of AfT flows. AfT interventions reduce the size of the shadow economy in countries that face high trade costs as well as in those that experience a depreciation of the real exchange rate. Finally, AfT interventions reduce the size of the shadow economy in countries that improve economic sophistication.

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“…The latter is all the more relevant that as noted above, Paragraph 57 of the WTO's Hong Kong Ministerial Declaration is silent about the genuine meaning of the expression '…expanding their trade'. Additionally, to the best of our knowledge, the existing relatively limited literature on the determinants of supply of AfT flows (e.g., Gamberoni & Newfarmer, 2014;Gnangnon, 2016aGnangnon, , 2016bGnangnon, , 2017Gnangnon, , 2019bLee et al, 2015;Tadasse & Fayissa, 2009) has not addressed the issue as to the extent to which recipient-countries' level of export product concentration (diversification) matters for the amount of AfT they receive. For example, the study by Gamberoni and Newfarmer (2014) was to help governments in AfT recipient-countries and donor-countries identify countries that have lower trade performance and are concurrently receiving less AfT flows than suggested by their global performance.…”

Section: Introductionmentioning

confidence: 99%

Do Donors provide higher Aid for Trade flows to Recipient-Countries that Diversify Export Products or Is It the Other Way Around?

Gnangnon

2021

Arthaniti: Journal of Economic Theory and Practice

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This article has explored whether Aid for Trade (AfT) flows that accrue to recipient-countries depend on the latter’s level of export product concentration. The analysis covers a sample of 132 countries over the period 2002–2017. The findings indicate that least developed countries (LDCs) receive higher AfT flows when they experience a rise in the level of export product concentration, while NonLDCs enjoy higher AfT flows when they diversify export products. Interestingly, higher amounts of AfT accrue to countries that diversify their export product basket towards manufacturing products, although different result patterns appear for the components of manufactured exports. JEL: F35; F14; O14

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Institutional quality and the effectiveness of aid for trade

Cited by 8 publications

References 22 publications

Aid for trade initiative 16 years on: lessons learnt from the empirical literature and recommendations for future directions

Aid for trade initiative 16 years on: lessons learnt from the empirical literature and recommendations for future directions

Do Aid for Trade Flows Help Reduce the Shadow Economy in Recipient Countries?

Do Donors provide higher Aid for Trade flows to Recipient-Countries that Diversify Export Products or Is It the Other Way Around?

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