[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/lea/leawpi/0709.html
   My bibliography  Save this paper

Aid and trade

Author

Listed:
  • SUWA-EISENMANN Akiko
  • VERDIER Thierry
Abstract
This paper surveys the recent theoretical and empirical literature that explores the relations between aid and trade and ask about the complementarity or substitution effects at work. We distinguish between the effects of aid on trade flows and its effect on trade policies, of the donor as well as the recipient countries. Special focus is given on trade facilitation, or “aid for trade”.

Suggested Citation

  • SUWA-EISENMANN Akiko & VERDIER Thierry, 2007. "Aid and trade," Research Unit Working Papers 0709, Laboratoire d'Economie Appliquee, INRA.
    • Handle: RePEc:lea:leawpi:0709
    as

    Download full text from publisher

    File URL: http://www.inra.fr/Internet/Departements/ESR/UR/lea/documents/wp/wp0709.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Susan Prowse, 2002. "The Role of International and National Agencies in Trade–related Capacity Building," The World Economy, Wiley Blackwell, vol. 25(9), pages 1235-1261, September.
    2. Hatzipanayotou, Panos & Michael, Michael S., 1995. "Foreign aid and public goods," Journal of Development Economics, Elsevier, vol. 47(2), pages 455-467, August.
    3. Bhagwati, Jagdish N & Brecher, Richard A & Hatta, Tatsuo, 1983. "The Generalized Theory of Transfers and Welfare: Bilateral Transfers in a Multilateral World," American Economic Review, American Economic Association, vol. 73(4), pages 606-618, September.
    4. Arvind Panagariya, 2003. "Aid through Trade: An effective option," International Trade 0308011, University Library of Munich, Germany.
    5. Brecher, Richard A & Bhagwati, Jagdish N, 1981. "Foreign Ownership and the Theory of Trade and Welfare," Journal of Political Economy, University of Chicago Press, vol. 89(3), pages 497-511, June.
    6. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
    7. van Wijnbergen, Sweder, 1985. "Aid, Export Promotion and the Real Exchange Rate: An African Dilemma?," CEPR Discussion Papers 88, C.E.P.R. Discussion Papers.
    8. Brecher, Richard A. & Bhagwati, Jagdish N., 1982. "Immiserizing transfers from abroad," Journal of International Economics, Elsevier, vol. 13(3-4), pages 353-364, November.
    9. Wagner, Don, 2003. "Aid and trade--an empirical study," Journal of the Japanese and International Economies, Elsevier, vol. 17(2), pages 153-173, June.
    10. Wilson,John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2003. "Trade facilitation and economic development : measuring the impact," Policy Research Working Paper Series 2988, The World Bank.
    11. Fabien Candau & Sébastien Jean, 2005. "What Are EU Trade Preferences Worth for Sub-Saharan Africa and Other Developing Countries?," Working Papers 2005-19, CEPII research center.
    12. Lipsey, Robert E & Weiss, Merle Yahr, 1984. "Foreign Production and Exports of Individual Firms," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 304-308, May.
    13. Simone Juhasz Silva & Douglas Nelson, 2012. "Does Aid Cause Trade? Evidence from an Asymmetric Gravity Model," The World Economy, Wiley Blackwell, vol. 35(5), pages 545-577, May.
    14. Yassin, Ibrahim H., 1982. "`When is trade more valuable than aid?': Revisited," World Development, Elsevier, vol. 10(2), pages 161-166, February.
    15. Schweinberger, A G, 1990. "On the Welfare Effects of Tied Aid," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 457-462, May.
    16. Heller, Peter S, 1975. "A Model of Public Fiscal Behavior in Developing Countries: Aid, Investment, and Taxation," American Economic Review, American Economic Association, vol. 65(3), pages 429-445, June.
    17. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing The Potential Benefit Of Trade Facilitation: A Global Perspective," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 8, pages 121-160, World Scientific Publishing Co. Pte. Ltd..
    18. World Bank, 2005. "Global Economic Prospects 2005 : Trade, Regionalism and Development," World Bank Publications - Books, The World Bank Group, number 14783.
    19. Bhagwati, Jagdish N. & Brecher, Richard A., 1980. "National welfare in an open economy in the presence of foreign-owned factors of production," Journal of International Economics, Elsevier, vol. 10(1), pages 103-115, February.
    20. Oliver Morrissey, 1993. "The Mixing of Aid and Trade Policies," The World Economy, Wiley Blackwell, vol. 16(1), pages 69-84, January.
    21. Brakman,Steven & Marrewijk,Charles van, 2009. "The Economics of International Transfers," Cambridge Books, Cambridge University Press, number 9780521118729, September.
    22. Lucia Tajoli, 1999. "The impact of tied aid on trade flows between donor and recipient countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 8(4), pages 373-388.
    23. Lahiri, Sajal & Raimondos-Moller, Pascalis & Wong, Kar-yiu & Woodland, Alan D., 2002. "Optimal foreign aid and tariffs," Journal of Development Economics, Elsevier, vol. 67(1), pages 79-99, February.
    24. Gale, David, 1974. "Exchange equilibrium and coalitions : An example," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 63-66, March.
    25. Jagdish N. Bhagwati & Richard A. Brecher & Tatsuo Hatta, 1985. "The Generalized Theory of Transfers and Welfare: Exogenous (policy-Imposed) and Endogenous (Transfer-Induced) Distortion," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(3), pages 697-714.
    26. Kemp, Murray C & Kojima, Shoichi, 1985. "Tied Aid and the Paradoxes of Donor-Enrichment and Recipient-Impoverishment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 721-729, October.
    27. Jeffrey B. Nugent & Makoto Yano, 1999. "Aid, Nontraded Goods, and the Transfer Paradox in Small Countries," American Economic Review, American Economic Association, vol. 89(3), pages 431-449, June.
    28. Brenton, Paul, 2003. "Integrating the least developed countries into the world trading system : the current impact of EU preferences under everything but arms," Policy Research Working Paper Series 3018, The World Bank.
    29. Jones, Ronald W., 1975. "Presumption and the transfer problem," Journal of International Economics, Elsevier, vol. 5(3), pages 263-274, August.
    30. Barrett, Christopher B & Mohapatra, Sandeep & Snyder, Donald L, 1999. "The Dynamic Effects of U.S. Food Aid," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 647-656, October.
    31. repec:bla:econom:v:37:y:1970:i:146:p:178-84 is not listed on IDEAS
    32. Lahiri, Sajal & Raimondos, Pascalis, 1995. "Welfare effects of aid under quantitative trade restrictions," Journal of International Economics, Elsevier, vol. 39(3-4), pages 297-315, November.
    33. Roger Svensson, 1996. "Effects of overseas production on home country exports: Evidence based on Swedish multinationals," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(2), pages 304-329, September.
    34. Christopher S Adam & Stephen A O'Connell, 2004. "Aid versus Trade Revisited: Donor and Recipient Policies in the Presence of Learning-by-Doing," Economic Journal, Royal Economic Society, vol. 114(492), pages 150-173, January.
    35. Maxwell, S. J. & Singer, H. W., 1979. "Food aid to developing countries: A survey," World Development, Elsevier, vol. 7(3), pages 225-246, March.
    36. Schweinberger, A. G., 2002. "Foreign aid, tariffs and nontraded private or public goods," Journal of Development Economics, Elsevier, vol. 69(1), pages 255-275, October.
    37. repec:rus:hseeco:123712 is not listed on IDEAS
    38. Mak Arvin & Bruce Cater & Saud Choudhry, 2000. "A causality analysis of untied foreign assistance and export performance: the case of Germany," Applied Economics Letters, Taylor & Francis Journals, vol. 7(5), pages 315-319.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Suwa-Eisenmann, Akiko & Verdier, Thierry, 2005. "Policy coherence for development: trade policies," CEPREMAP Working Papers (Docweb) 0519, CEPREMAP.
    2. Lahiri, Sajal & Raimondos-Moller, Pascalis, 1997. "On the tying of aid to tariff reform," Journal of Development Economics, Elsevier, vol. 54(2), pages 479-491, December.
    3. Martínez-Zarzoso Inmaculada & Klasen Stephan & Nowak-Lehmann D. Felicitas & Larch Mario, 2009. "Does German Development Aid Promote German Exports?," German Economic Review, De Gruyter, vol. 10(3), pages 317-338, August.
    4. Schweinberger, A. G., 2002. "Foreign aid, tariffs and nontraded private or public goods," Journal of Development Economics, Elsevier, vol. 69(1), pages 255-275, October.
    5. Liu, Ailan & Tang, Bo, 2018. "US and China aid to Africa: Impact on the donor-recipient trade relations," China Economic Review, Elsevier, vol. 48(C), pages 46-65.
    6. Lahiri, Sajal & Raimondos-Moller, Pascalis & Wong, Kar-yiu & Woodland, Alan D., 2002. "Optimal foreign aid and tariffs," Journal of Development Economics, Elsevier, vol. 67(1), pages 79-99, February.
    7. Schweinberger, Albert G. & Lahiri, Sajal, 2006. "On the provision of official and private foreign aid," Journal of Development Economics, Elsevier, vol. 80(1), pages 179-197, June.
    8. Hatzipanayotou, Panos & Michael, Michael S., 1995. "Foreign aid and public goods," Journal of Development Economics, Elsevier, vol. 47(2), pages 455-467, August.
    9. Trisha Bezmen, 2006. "Foreign Aid under Quantitative Restrictions: Welfare Effects and International Factor Mobility," Review of International Economics, Wiley Blackwell, vol. 14(4), pages 709-721, September.
    10. Steven Brakman & Charles Van Marrewijk, 2007. "Transfers, Nontraded Goods, and Unemployment: An Analysis of the Keynes-Ohlin Debate," History of Political Economy, Duke University Press, vol. 39(1), pages 121-143, Spring.
    11. Bharat R. Hazari & Jean-Pierre Laffargue & Chi-Chur Chao & Eden S. H. Yu, 2007. "A Dynamic Analysis of Tied Aid," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00270896, HAL.
    12. Philipp H�hne & Birgit Meyer & Peter Nunnenkamp, 2014. "Who Benefits from Aid for Trade? Comparing the Effects on Recipient versus Donor Exports," Journal of Development Studies, Taylor & Francis Journals, vol. 50(9), pages 1275-1288, September.
    13. Martínez-Zarzoso Inmaculada & Nowak-Lehmann Felicitas & Klasen Stephan & Johannsen Florian, 2016. "Does German Development Aid boost German Exports and German Employment? A Sectoral Level Analysis," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(1), pages 71-94, February.
    14. repec:bla:rdevec:v:13:y:2009:i:s1:p:393-402 is not listed on IDEAS
    15. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann & M. D. Parra & Stephan Klasen, 2014. "Does Aid Promote Donor Exports? Commercial Interest versus Instrumental Philanthropy," Kyklos, Wiley Blackwell, vol. 67(4), pages 559-587, November.
    16. Slobodan Djajić, 2008. "Foreign Aid, Infrastructure Development, and Welfare: An Intertemporal Analysis," WIDER Working Paper Series RP2008-64, World Institute for Development Economic Research (UNU-WIDER).
    17. Chi‐Chur Chao & Jean‐Pierre Laffargue & Pasquale M. Sgro, 2010. "Foreign Aid, Wage Inequality, and Welfare for a Small Open Economy with Tourism," Review of International Economics, Wiley Blackwell, vol. 18(3), pages 454-464, August.
    18. Emily T. Cremers & Partha Sen, 2005. "Transfers and the Terms of Trade in an Overlapping Generations Model," Working papers 138, Centre for Development Economics, Delhi School of Economics.
    19. Emily T. Cremers & Partha Sen, 2009. "Transfers, the terms of trade, and capital accumulation," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(4), pages 1599-1616, November.
    20. Brakman, Steven & van Marrewijk, Charles, 1995. "Transfers, returns to scale, tied aid and monopolistic competition," Journal of Development Economics, Elsevier, vol. 47(2), pages 333-354, August.
    21. Barthel, Fabian & Neumayer, Eric & Nunnenkamp, Peter & Selaya, Pablo, 2014. "Competition for Export Markets and the Allocation of Foreign Aid: The Role of Spatial Dependence among Donor Countries," World Development, Elsevier, vol. 64(C), pages 350-365.

    More about this item

    Keywords

    aid for trade; aid; competitiveness.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lea:leawpi:0709. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Madeleine Roux (email available below). General contact details of provider: http://www.inra.fr/Internet/Departements/ESR/UR/lea/index.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.