Date: 2020
Type: Article
Aid for trade and international transactions in goods and services
Review of international economics, 2020, Vol. 28, No. 2, pp. 320-340
HOEKMAN, Bernard M., SHINGAL, Anirudh, Aid for trade and international transactions in goods and services, Review of international economics, 2020, Vol. 28, No. 2, pp. 320-340
- https://hdl.handle.net/1814/66052
Retrieved from Cadmus, EUI Research Repository
The empirical literature on aid for trade (AfT) mainly considers its effects on merchandise trade and investment. In this paper, we provide an in-depth analysis of the relationship between AfT and trade in services using both aggregate and bilateral data. We find a statistically weak effect of AfT on both goods and services trade in our aggregate analysis once we account for endogeneity in the AfT-trade relationship. In contrast, the bilateral analysis suggests that AfT, in particular that allocated to services activities, especially economic infrastructure, has a positive effect on recipients' merchandise exports to donor countries. This novel finding is robust across different lag structures and provides evidence of complementarities between services AfT and goods trade.
Additional information:
First published online:26 November 2019
Cadmus permanent link: https://hdl.handle.net/1814/66052
Full-text via DOI: 10.1111/roie.12452
ISSN: 0965-7576; 1467-9396
Publisher: Wiley
Sponsorship and Funder information:
European Union's Horizon 2020 research and innovation programme
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