scholarly journals Effect of Productive Capacities on Economic Complexity: Do Aid for Trade Flows Matter?

2021 ◽  
Vol 36 (4) ◽  
pp. 626-688
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Scaling Up ◽  
Development Aid ◽  
Trade Flows ◽  
Poor Countries ◽  
Economic Complexity ◽  
Aid For Trade

This is the first study to examine the effect of productive capacities on economic complexity and understand whether the Aid for Trade (AfT) flows is important for this effect in recipient countries. The analysis uses a sample of 126 developed and developing countries for 2002-2018 and adopts the two-step system Generalized Method of Moments approach. Results show that strengthening productive capacities enhances economic complexity. Furthermore, productive capacities and total AfT flows are strongly complementary in positively affecting economic complexity, and the degree of complementarity is higher for poor countries than for other AfT-recipient countries. Similarly, productive capacities are strongly complementary with total Non-AfT flows, as well as for total development aid. These findings highlight the need for scaling-up development aid flows, notably AfT flows, in favor of developing countries and poor countries having the lowest levels of productive capacities.

Aid for trade

2006 ◽  
Vol 5 (2) ◽  
pp. 1-41 ◽  
Author(s):  
Joseph E. Stiglitz ◽  
Andrew Charlton
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Poor Countries ◽  
The Poor ◽  
Transition Costs ◽  
Development Policies ◽  
Aid For Trade ◽  
The Developed Countries ◽  
First Time ◽  
Trading Regime

Adjustment to a post‐Doha trading regime will be disproportionately costly and difficult for developing countries. Increased aid is vital for the poor countries if they are to grasp the opportunities provided through trade and meet transition costs. With aid‐for‐trade, for the first time, the developed countries have another bound and meaningful commitment that they can offer developing countries. Our proposal to provide new resources to meet adjustment needs, however, does not suggest that trade, when combined with aid, will be a panacea for developing countries. Interactions between trade, aid, and broader development policies and reforms are important.

scholarly journals The Development of Corporate Bond Markets: A Cross-Country Analysis

2015 ◽  
Vol 8 (1) ◽  
pp. 50 ◽  
Author(s):  
Dung P. Le ◽  
Quang T. T. Nguyen ◽  
Toan M. Nguyen
Keyword(s):  
Developing Countries ◽  
Exchange Rates ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Corporate Bonds ◽  
Corporate Bond ◽  
Bond Markets ◽  
Exchange Rate Variability ◽  
Country Analysis ◽  
Cross Country

<p>This study examines how macro-determinants influence corporate bonds by firms in 90 developed and developing countries over the period of 1970-2013. Employing Generalized Method of Moments (GMM) model, the study explores whether exchange rate variability and the openess of the economy have a significant impact on corporate bonds of firms. Specifically, it examines whether increased variability of exchange rates, increases the issuing of corporate bonds by the firms in these countries, or whether corporate bonds are used less by firms in countries where there is greater openness.<strong></strong></p>

scholarly journals Aid for Trade and Real Exchange Rate in Recipient-Countries

2020 ◽  
Author(s):  
SENA KIMM GNANGNON
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Scaling Up ◽  
Development Aid ◽  
Current Analysis ◽  
Policy Perspective ◽  
Aid For Trade ◽  
Trade Sector ◽  
Trade Market

Abstract The current analysis contributes to the literature on the real exchange rate (RER) effect of development aid by separating out the RER effect of the development aid allocated to the trade sector - referred to as Aid for Trade (AfT) - from the effect of NonAfT flows. The empirical findings show that AfT flows exert a RER depreciation in recipient-economies, while NonAfT flows are associated with a RER appreciation. From a policy perspective, these results show that scaling-up AfT flows could promote countries' competitiveness in the international trade market through a greater extent of RER depreciation.

International Trade Cooperation and Exogenous Economic Shocks in Developing Countries

2020 ◽  
pp. 097674792094518
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Method Of Moments ◽  
Trade Liberalisation ◽  
Financial Resources ◽  
Economic Shocks ◽  
Multilateral Trade ◽  
Two Factors ◽  
Aid For Trade ◽  
Generalised Method Of Moments

This article explores whether the World Trade Organization (WTO), through its role of promoting multilateral trade liberalisation and mobilising greater financial resources (i.e., Aid for Trade [AfT] flows) in favour of the trade sector in developing countries, contributes to reducing the size of external economic shocks experienced by these countries. An empirical analysis is carried out using a sample of 111 countries over the period 1996–2016 and relying on the two-step system generalised method of moments (GMM) approach. The findings indicate that taken separately, multilateral trade liberalisation and AfT flows reduce the size of shocks. While the two factors are substitutable in negatively influencing countries’ size of shocks, it also appears that multilateral trade liberalisation always results in smaller shocks, irrespective of the amount of AfT that accrues to countries.

Foreign Capital and Economic Growth

1988 ◽  
Vol 23 (3) ◽  
pp. 302-310
Author(s):  
Raj Aggarwal
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Global Change ◽  
Foreign Capital ◽  
Development Aid ◽  
Capital Inflows ◽  
Private Capital ◽  
Competitive Markets ◽  
Poor Countries ◽  
Foreign Capital Inflows

In the current environment of significant global change, how can declining levels of development aid and private capital inflows be best used to promote economic growth in the developing countries? This question is addressed here and traditional analysis of this topic is complemented by taking a perspective that focuses on the limitations of how development aid and foreign capital inflows are usually allocated. It is suggested here that poor countries can benefit from a greater use of competitive markets to allocate development aid and private capital inflows.

scholarly journals The impact of taxes effects on the economic growth of developing countries in ASIA

2020 ◽  
Author(s):  
Văn Thuận Nguyễn ◽  
Xuân Hằng Trần ◽  
Minh Hằng Nguyễn ◽  
Thị Kim Chi Ng
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Method Of Moments ◽  
Positive Impact ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Estimation Methods ◽  
Policy Suggestions ◽  
The Impact

The objective of the study is to examine the impact of taxes on economic growth in developing countries in Asia during 18-year period (2000-2017). Using the estimation methods of OLS, FEM, REM, GLS and two-step system generalized method of moments (S-GMM) for panel data. Empirical results show that taxation has a positive impact on economic growth at level of 1%, while the most studies consider this to be a negative relationship. Besides, factors such as government spending, trade openness, inflation also have a significant impact on economic growth. On that basis, the study provides some policy suggestions for tax policies in these countries.

scholarly journals Development Aid and Export Resilience in Developing Countries: A Reference to Aid for Trade

2021 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Negative Impact ◽  
Developed Countries ◽  
Development Aid ◽  
Least Developed Countries ◽  
Member States ◽  
Health Crisis ◽  
Aid For Trade ◽  
The 2008 Financial Crisis ◽  
Positive Effect

The COVID-19 pandemic, like previous major crises, such as the 2008 financial crisis, has had a severe negative impact on international trade flows. International institutions are now exploring ways to help their member states recover from the health crisis, and foster the resilience of their economies to future crises. As far as trade is concerned, institutions that deal primarily with trade matters are making effort to help their member states foster the resilience of their trade performance to future shocks. In this context, the World Trade Organization (WTO), which is the only international organization that deals with the global rules of trade between nations, has organized a series of events since the onset of the COVID-19 pandemic. It has now planned to hold in September 2021 the 2021 WTO Public Forum whose theme is "Trade Beyond COVID-19: Building Resilience". The present paper aims to contribute to this debate by examining the effect of development aid, i.e., the so-called official development aid, in particular its Aid for Trade (AfT) component, on export resilience. The resilience of exports refers to the capacity of countries' aggregate exports to resist to shocks, whether environmental or external shocks. The core argument of the analysis is that development aid would affect export resilience through its effect on productive capacities. The analysis covers 93 developing countries over the period 2002-2018. The findings indicate that total development aid flows, including both AfT flows and NonAfT flows exert a positive effect on export resilience. Among AfT components, AfT for productive capacities appears to exert a higher positive effect on export resilience than AfT for economic infrastructure and AfT for trade policy and regulation. In addition, development aid (whatever the aid variable considered) exerts the highest positive effect on export resilience in countries (such as Least developed countries - LDCs) that have the lowest level of productive capacities. These findings highlight the need for donor-countries to supply higher development aid flows, in particular AfT flows to countries such as LDCs that have low levels of productive capacities.

scholarly journals Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis

2020 ◽  
Vol 9 (1) ◽  
pp. 22-57
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Empirical Analysis ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Developed Countries ◽  
Development Aid ◽  
Data Set ◽  
Financial Flows ◽  
The Impact

The implementation of sustainable development goals (SDGs) adopted in 2015 by the international community in the Agenda 2030 requires a substantial mobilization of financial resources. In the meantime, Goal 17 of this Agenda recognizes trade as an important means of the implementation of the SDGs. The current article investigates empirically the impact of openness to international trade on the diversification of external financial flows for development, which could help developing countries achieve the SDGs by 2030. To that end, three major external flows for development have been considered: development aid inflows, migrants’ remittances inflows and foreign direct investment (FDI) inflows. The analysis relies on a panel data set comprising 116 countries, over the period 1970–2017. The empirical analysis relies primarily on the two-step system generalized method of moments (GMM) approach and shows that greater trade openness exerts a positive and significant impact on the diversification of external financial flows for development, in particular, in the least developed countries (LDCs). As a result, greater openness to international trade could be an important tool for external capital flows diversification in developing countries. JEL Classification: F13, F14, F21, F24, F35, O20

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