Aid and Trade – A Donor's Perspective
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Other documents of the author: Nowak-Lehmann D., Felicitas; Martinez-Zarzoso, Inmaculada; Klasen, Stephan; Herzer, Dierk
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http://dx.doi.org/10.1080/00220380902952407 |
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Title
Aid and Trade – A Donor's PerspectiveAuthor (s)
Date
2009Publisher
Taylor & FrancisISSN
0022-0388Type
info:eu-repo/semantics/articleSubject
Abstract
One reason donors provide foreign aid is to support their exports to aid-recipient countries. Time
series data for Germany suggests an average return of between US$ 1.04 to US$ 1.50 for each US dollar of aid
spent ... [+]
One reason donors provide foreign aid is to support their exports to aid-recipient countries. Time
series data for Germany suggests an average return of between US$ 1.04 to US$ 1.50 for each US dollar of aid
spent by Germany. Although this is well below previous estimates, the value is robust to different specifications
and econometric approaches. Interestingly, we find strong evidence of crowding out between bilateral donors in
the sense that bilateral aid from other EU members significantly reduces exports from Germany to the
recipients. The evidence suggests that, in the long-run, aid causes exports and not vice versa. We discuss the
implications these findings might have for aid volumes and allocation. [-]
Is part of
Journal of Development Studies, 45, 7, p. 1184–1202Rights
Copyright 2009 Taylor & Francis
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- ECO_Articles [692]