Aid and trade

Akiko Suwa‐Eisenmann · Thierry Verdier

85 citations0/0 files storedOxford Review of Economic Policy

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International Development and Aid Global trade and economics World Trade Organization Law

Abstract

This paper surveys the recent theoretical and empirical literature that explores the relations between aid and trade and asks about the complementarity or substitution effects at work. We distinguish between the effects of aid on trade flows and on trade policies, of the donor as well as the recipient countries. Special focus is given on trade facilitation, or ‘aid for trade’.

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References

1996Financial Dependence and Growth 1948Foundations of Economic Analysis.2001Infrastructure, Geographical Disadvantage, Transport Costs, and Trade 2001Business and Social Networks in International Trade 1952The Transfer Problem and Transport Costs: The Terms of Trade When Impediments are Absent 2005What Undermines Aid's Impact on Growth?1970Industry and Trade in Some Developing Countries 1979The US Aid Relationship: A Test of the Recipient Need and the Donor Interest Models

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2016Aid for Trade and Greenfield Investment 2017US and China aid to Africa: Impact on the donor-recipient trade relations 2018Aid for trade and trade policy in recipient countries 2012Strategic Side Payments: Preferential Trading Agreements, Economic Reform, and Foreign Aid 2015Are Trade Preferences more Effective than Aid in Supporting Exports? Evidence from the ‘Everything But Arms’ Preference Scheme 2012Does Aid Cause Trade? Evidence from an Asymmetric Gravity Model

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