IMPACT OF AID FOR TRADE IN DEVELOPING COUNTRIES OF ASIA
Keywords:
Aid for Trade, Developing Countries, OCED, Trade Related Policies (TRP)Abstract
In the past few decades, the concept of Aid for Trade (AfT) become prominent the developing countries that received the aid and those countries who donate aid. The idea of ‘trade, not aid’ and even ‘trade as aid’ also have limited scope. The current study investigates the impact of AfT in improving overall trade received in different sectors. Data on 5 developing countries collected from OCED AfT database for the period 2002 to 2015. The results suggest that aid received in the agriculture and transport sector have positive and significant effects on trade while banking and financial services and Trade Related Policies (TRP) have insignificant impacts on the trade. Moreover, results reveal that the impact of aid on trade is negligible as the amount disbursed is very low in all sectors. There is need to increase in the amount of aid and to also make better economic policies.
References
Bourguignon, F., & Sundberg, M. (2007). Aid effectiveness – Opening the black box. American Economic Review P&P, 97(2), 316–321.
Burnside, C., & Dollar, D. (2000). Aid, policies, and growth. American Economic Review, 90(4), 847–868.
Cal?`, M., Grimm, S., Page, S., Phillips, L., & te Velde, D. W. (2006). The financial architecture of AfT. ILEAP background brief no. 9.
Cali, M. Razzaque, M., & te Velde, D. (2011). Effectiveness of AfT in Small and Vulnerable Economies. Economic Paper. 91.
Doucouliagos, H., & Paldam, M. (2007). The aid effectiveness literature. The sad result of 40 years of research. Working paper 2007-15.
Evenett, S. J. (2005). Some tough love on “AfT”. Intereconomics, 40(6), 308– 335.
Ghimire, S. P. (2013). Foreign aid effectiveness: Three essays on aid-for-trade and export performance of developing countries. (PhD thesis submitted at Western Michigan University). USA.
Gomanee, K., Girma, S., & Morrissey, O. (2002). Aid, investment and growth in sub-Saharan Africa. In Paper prepared for the 10th general conference of EADI, Ljubljana.
Hansen, H., & Tarp, F. (2001). Aid and growth regressions. Journal of Development Economics, 64, 547–570.
Helble, M., Mann, C., & Wilson, J. (2009). Aid for Trade Facilitation, Policy Research Working Paper 5064, Washington, D.C: World Bank.
Hoekman, B., & Prowse, S. (2005). Economic policy responses to preference erosion: From trade as aid to AfT. Policy research working paper no. 3721. Washington, DC: World Bank.
Hoekman, B., & Wilson, J. S. (2010). AfT: Building on Progress Today for Tomorrow’s Future. Policy Research Working Paper, 5361. The World Bank.
Hühne, P., Meyer, B., & Nunnenkamp, P. (2014). Who benefits from AfT? Comparing the effects on recipient versus donor exports. The Journal of Development Studies, 50(9), 1275-1288.
Kiute, L. S., Nasiri, A., Alleyne, A., Alleyne, A., & Wenue, J. (2015). Developing Country Studies, 5(14), 5-14. www.iiste.org
Lemi, A. (2017). Aid for trade and Africa’s trade performance: Evidence from bilateral trade flows with China and OECD countries. Journal of African Trade, 4 (1–2), 37-60.
McPherson, M. F., & Rakovski, T. (2001). Understanding the growth process in sub-Saharan Africa: Some empirical estimates. African economic policy discussion paper. Cambridge, MA: Harvard University.
Moreira, E. P. (2010). AfT, Infrastructure, and the Growth Effects of Trade Reform. Issues and Implications for Caribbean countries. Policy Research Working Paper, 5265. The World Bank.
Munemo, J. (2011). Foreign Aid and Export Diversification in Developing Countries. The Journal of International Trade and Economic Development. 20(3), 339 – 355.
Pettersson, J. & Johansson, L. (2011). Aid for Trade, and Bilateral Trade: An Empirical Study. The Journal of International Trade and Economic Development: An International and Comparative Review. DOI:10.10 80/09638199.2011.613998
Rajan, R. G., & Subramanian, A. (2005). What undermines aid’s impact on growth? NBER working paper no. 11657. Retrieved from http://www.oecd.org/dac/ aft/
Stiglitz, J. & Charlton, A. (2006). Aid for trade, International Journal of Development Issues, 5 (2), 1-41.
Vijil, M. & L. Wagner (2012). Does Aid for Trade Enhance Export Performance Investigating the Infrastructure Channel. The World Economy, 35(7), 838-868.
Burnside, C., & Dollar, D. (2000). Aid, policies, and growth. American Economic Review, 90(4), 847–868.
Cal?`, M., Grimm, S., Page, S., Phillips, L., & te Velde, D. W. (2006). The financial architecture of AfT. ILEAP background brief no. 9.
Cali, M. Razzaque, M., & te Velde, D. (2011). Effectiveness of AfT in Small and Vulnerable Economies. Economic Paper. 91.
Doucouliagos, H., & Paldam, M. (2007). The aid effectiveness literature. The sad result of 40 years of research. Working paper 2007-15.
Evenett, S. J. (2005). Some tough love on “AfT”. Intereconomics, 40(6), 308– 335.
Ghimire, S. P. (2013). Foreign aid effectiveness: Three essays on aid-for-trade and export performance of developing countries. (PhD thesis submitted at Western Michigan University). USA.
Gomanee, K., Girma, S., & Morrissey, O. (2002). Aid, investment and growth in sub-Saharan Africa. In Paper prepared for the 10th general conference of EADI, Ljubljana.
Hansen, H., & Tarp, F. (2001). Aid and growth regressions. Journal of Development Economics, 64, 547–570.
Helble, M., Mann, C., & Wilson, J. (2009). Aid for Trade Facilitation, Policy Research Working Paper 5064, Washington, D.C: World Bank.
Hoekman, B., & Prowse, S. (2005). Economic policy responses to preference erosion: From trade as aid to AfT. Policy research working paper no. 3721. Washington, DC: World Bank.
Hoekman, B., & Wilson, J. S. (2010). AfT: Building on Progress Today for Tomorrow’s Future. Policy Research Working Paper, 5361. The World Bank.
Hühne, P., Meyer, B., & Nunnenkamp, P. (2014). Who benefits from AfT? Comparing the effects on recipient versus donor exports. The Journal of Development Studies, 50(9), 1275-1288.
Kiute, L. S., Nasiri, A., Alleyne, A., Alleyne, A., & Wenue, J. (2015). Developing Country Studies, 5(14), 5-14. www.iiste.org
Lemi, A. (2017). Aid for trade and Africa’s trade performance: Evidence from bilateral trade flows with China and OECD countries. Journal of African Trade, 4 (1–2), 37-60.
McPherson, M. F., & Rakovski, T. (2001). Understanding the growth process in sub-Saharan Africa: Some empirical estimates. African economic policy discussion paper. Cambridge, MA: Harvard University.
Moreira, E. P. (2010). AfT, Infrastructure, and the Growth Effects of Trade Reform. Issues and Implications for Caribbean countries. Policy Research Working Paper, 5265. The World Bank.
Munemo, J. (2011). Foreign Aid and Export Diversification in Developing Countries. The Journal of International Trade and Economic Development. 20(3), 339 – 355.
Pettersson, J. & Johansson, L. (2011). Aid for Trade, and Bilateral Trade: An Empirical Study. The Journal of International Trade and Economic Development: An International and Comparative Review. DOI:10.10 80/09638199.2011.613998
Rajan, R. G., & Subramanian, A. (2005). What undermines aid’s impact on growth? NBER working paper no. 11657. Retrieved from http://www.oecd.org/dac/ aft/
Stiglitz, J. & Charlton, A. (2006). Aid for trade, International Journal of Development Issues, 5 (2), 1-41.
Vijil, M. & L. Wagner (2012). Does Aid for Trade Enhance Export Performance Investigating the Infrastructure Channel. The World Economy, 35(7), 838-868.
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Published
2020-12-15
How to Cite
Qureshi, A. A., Naz, L., & Alam, S. (2020). IMPACT OF AID FOR TRADE IN DEVELOPING COUNTRIES OF ASIA. Journal of Business Strategies, 14(2), 01–14. Retrieved from https://greenwichjournals.com/index.php/businessstudies/article/view/491
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