Do Donors provide higher Aid for Trade flows to Recipient-Countries that Diversify Export Products or Is It the Other Way Around?

2021 ◽  
pp. 097674792110366
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developed Countries ◽  
Trade Flows ◽  
The Other ◽  
Least Developed Countries ◽  
Product Concentration ◽  
Aid For Trade ◽  
Manufactured Exports ◽  
Export Product

This article has explored whether Aid for Trade (AfT) flows that accrue to recipient-countries depend on the latter’s level of export product concentration. The analysis covers a sample of 132 countries over the period 2002–2017. The findings indicate that least developed countries (LDCs) receive higher AfT flows when they experience a rise in the level of export product concentration, while NonLDCs enjoy higher AfT flows when they diversify export products. Interestingly, higher amounts of AfT accrue to countries that diversify their export product basket towards manufacturing products, although different result patterns appear for the components of manufactured exports. JEL: F35; F14; O14

scholarly journals Do Donors Provide Higher AfT Flows to Recipient-Countries that Diversify Export Products or Is It the Other Way Around?

2020 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developed Countries ◽  
The Other ◽  
Least Developed Countries ◽  
Product Concentration ◽  
Aid For Trade ◽  
Manufactured Exports ◽  
Export Product

This article has explored whether Aid for Trade (AfT) flows that accrue to recipient-countries depend on the latter's level of export product concentration. The analysis covers a sample of 133 countries over the period 2002-2017. The findings indicate that least developed countries (LDCs) receive higher AfT flows when they experience a rise in the level of export product concentration, while NonLDCs enjoy higher AfT flows when they diversify export products. Interestingly, higher amounts of AfT accrue to countries that diversify their export product basket towards manufacturing products, although different result patterns appear for the components of manufactured exports.

Aid for Trade flows and Real Exchange Rate Volatility in Recipient-Countries

2020 ◽  
pp. 2250001
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Exchange Rate Volatility ◽  
Developed Countries ◽  
Least Developed Countries ◽  
Full Sample ◽  
Aid For Trade ◽  
Trade Volatility ◽  
Export Product ◽  
Real Exchange Rate Volatility

This paper aims to contribute to the literature on the determinants of real exchange rate volatility by investigating the effect of Aid for Trade (AfT) flows on real exchange rate volatility in recipient-countries. The empirical findings show that over the full sample, AfT flows influence negatively the volatility of real exchange rate, with a lower reducing effect on Least developed countries (LDCs) compared to NonLDCs. The channels through which this effect materializes include export product concentration, institutional and governance quality, foreign direct investment inflows and terms of trade volatility. These results show that AfT flows clearly matter for real exchange rate volatility.

scholarly journals Foreign Aid and Trade Capacity Development Recent Evidence from Uganda

2016 ◽  
Vol 9 (3) ◽  
pp. 39
Author(s):  
Alex Thomas Ijjo ◽  
Isaac M. B. Shinyekwa
Keyword(s):  
Foreign Aid ◽  
Capacity Development ◽  
Developed Countries ◽  
External Trade ◽  
Least Developed Countries ◽  
Development Indicators ◽  
Side Constraints ◽  
The World ◽  
Aid For Trade ◽  
World Development

Endemic supply side constraints including fluctuating output levels, deficient trade infrastructure, rampant non-tariff barriers and incapacity to ensure international quality standards continue to thwart the gainful participation of many Least Developed Countries (LDCs) in an increasingly liberal global trade environment. At its 2005 Hong Kong Ministerial Conference, the World Trade Organization launched its Aid for Trade (AFT) initiative aimed at coordinating global financial support for strengthening trade capacity in Least Developed Countries (LDCs). This paper examined the effect of foreign aid, particularly Official Development Assistance, on Uganda’s external trade and its AFT component in strengthening the country’s trade capacity. Using time series Error Correction Modelling and the World Bank’s World Development Indicators and official national statistics, the paper finds small but positive aid influence on Uganda’s exports and imports and generally close alignment between aid and national priorities. However, given general aid volatility but more especially following the anti-homosexuality legislation and gross corruption allegations in the case of Uganda, the paper advises that external aid be treated as a supplement rather than a substitute for domestic financial resource mobilization in trade capacity development.

Aid for Trade, Export Product Diversification and Foreign Direct Investment

2020 ◽  
Author(s):  
Sèna Kimm GNANGNON
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Product Diversification ◽  
Product Concentration ◽  
Fdi Inflows ◽  
Aid For Trade ◽  
High Level ◽  
Positive Effect ◽  
Export Product

Abstract The few existing studies on the relationship between Aid for Trade (AfT) flows and Foreign Direct Investment (FDI) inflows tend to report a positive effect of total AfT flows, in particular of Aid flows for building economic infrastructure, on FDI inflows. The present article aims to complement these works by investigating whether the effect of AfT flows on inward FDI stock depends on recipient-countries' level of export product concentration. The empirical analysis has shown that AfT flows exert a strong positive effect on inward FDI stock in countries that experience a high level of export product concentration. These findings are relevant for developing countries in light of the concentration of their export products on primary commodities, and given the strong role of FDI flows for employment generation, economic growth and development in these countries.

AID FOR TRADE FLOWS AND POVERTY REDUCTION

2021 ◽  
pp. 1-44
Author(s):  
SÈNA KIMM GNANGNON
Keyword(s):  
Income Inequality ◽  
Poverty Reduction ◽  
Development Aid ◽  
Policy Implications ◽  
Policy Debate ◽  
Product Concentration ◽  
Aid For Trade ◽  
Official Development Aid ◽  
The Empirical Analysis ◽  
Export Product

The effectiveness of Aid for Trade (AfT) interventions, including with respect to recipient countries’ trade performance, has now been well explored in the literature. However, in spite of the voluminous literature on the poverty effect of the total official development aid, the effect of AfT flows on poverty has received little attention on the empirical front. This paper aims to contribute to the policy debate on this matter by investigating the effect of AfT flows on poverty in recipient countries. In particular, the analysis explores whether this effect translates through countries’ level of export product concentration, as the latter can influence income inequality, and hence the transformation of economic growth into poverty reduction in recipient countries. The empirical analysis, based on 100[Formula: see text]AfT recipient countries, has shown that AfT interventions are associated with poverty reduction in countries that diversify their export products, including toward manufacturing products. Additionally, AfT flows dampen the positive poverty effect of income inequality, and lead to greater poverty reduction in countries with a great extent of fiscal redistribution. Finally, the analysis has shown that AfT interventions mitigate the positive poverty effect of import product concentration. These results have important policy implications.

Effect of Aid for Trade on Financial Development: Exploring the Channel of Manufactured Exports

2021 ◽  
Author(s):  
SENA KIMM GNANGNON
Keyword(s):  
Financial Development ◽  
Scale Up ◽  
Productive Capacity ◽  
Positive Effects ◽  
Generalized Methods Of Moments ◽  
Aid For Trade ◽  
Manufactured Exports ◽  
Methods Of Moments ◽  
Export Product

Abstract Many studies have considered the macroeconomic effects of Aid for Trade (AfT) flows, that is, the part of official development assistance allocated for the development of the trade sector. The present paper aims to expand this literature by investigating the effect AfT flows on financial development notably through channel of manufactured exports. The analysis has covered a set of 120 countries over the period 2002–2017, and relied primarily on the two-step system Generalized Methods of Moments (GMM). Results show that total AfT flows, notably its components AfT for economic infrastructure and AfT for productive capacity promote financial development, and the magnitude of these positive effects rises as countries' share of manufactured exports increases. Additionally, total AfT flows influence positively financial development in countries that diversify their export product basket towards manufactured exports. These findings highlight the key role of AfT flows in promoting financial development in recipient-countries, and therefore call on donor-countries to scale up AfT flows in favour of developing countries, given the importance of financial development for economic development.

Effect of Export Upgrading on Financial Development

2019 ◽  
Vol 10 (03) ◽  
pp. 1950012 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Quality Improvement ◽  
Product Quality ◽  
Financial Development ◽  
Developed Countries ◽  
Product Diversification ◽  
Least Developed Countries ◽  
Product Quality Improvement ◽  
Export Product ◽  
Export Product Diversification

Using a panel dataset comprising 137 countries (both developed and developing countries) over the period 1970–2010, this paper has examined the effect of export upgrading (i.e., export product diversification and export product quality improvement) on financial development. The findings suggest that export product diversification and export product quality improvement influence positively and significantly financial development in high income countries (HICs) and developing countries alike. However, for least developed countries (LDCs), export product diversification promotes financial development, but export product quality improvement exerts a negative effect on financial development.

scholarly journals Canada’s role in the foreign aid programmes to the developping nations : a geographical appraisal

2005 ◽  
Vol 12 (26) ◽  
pp. 225-234
Author(s):  
Jean Cermakian
Keyword(s):  
Foreign Aid ◽  
Latin American ◽  
Developed Countries ◽  
Trade Flows ◽  
Western Hemisphere ◽  
The Other ◽  
The World ◽  
French Speaking ◽  
External Aid ◽  
Colombo Plan

This article shows first of all the importance of geographic studies of the foreign aid programmes as necessary adjuncts to the analysis of trade flows between industrial-ised and less-developed countries. Secondly, it deals briefly with the total volume of bilateral and multilateral external aid in the world and ranks Canada among the first fifteen donor countries. Finally, it emphasizes the evolution of the spatial distribution of Canada's bilateral external aid programme. Beginning as an integral part of the Colombo Plan in 1950, this programme was extended to the other Commonwealth countries in 1958 (Caribbean) and 1960 (Africa). Only in 1961 did it go beyond the Commonwealth framework due to Canada's bilingual and bicultural character (aid to French-speaking Africa) and to its location in the Western Hemisphere (aid to Latin American, beginning in 1964). The article concludes by stressing the need for further studies in this field, at a time when Canada seems to indicate willingness to intensity its external aid commitments.

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.

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