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

Member States ◽

Health Crisis ◽

Aid For Trade ◽

The 2008 Financial Crisis ◽

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.

Aid for Trade and Recipient Countries’ Export Structure: Does Trade Policy Liberalisation Matter?

Arthaniti-Journal of Economic Theory and Practice ◽

10.1177/0976747918806361 ◽

2018 ◽

Vol 18 (1) ◽

pp. 56-85 ◽

Cited By ~ 3

Author(s):

Sèna Kimm Gnangnon

Keyword(s):

Trade Policy ◽

Developed Countries ◽

Data Set ◽

Full Sample ◽

Export Structure ◽

Export Ratio ◽

Aid For Trade ◽

Methods Of Moments ◽

This article investigates the effect of aid-for-trade (AfT) inflows on beneficiary-countries’ export structure. It additionally examines whether this effect depends on recipient-countries’ level of trade policy liberalisation. Export structure is measured by the ratio of exports of low-skilled and technology-intensive manufactures to total primary export products (LOW), the ratio of exports of medium-skilled and technology-intensive manufactures to total primary export products (MEDIUM) and the ratio of exports of high-skilled and technology-intensive manufactures to total primary export products (HIGH). The analysis has been carried out using an unbalanced panel data set of 121 countries (of which 41 least-developed countries [LDCs]) over the period 2002–2015. Using the two-step generalised methods of moments (GMM) approach, the empirical results show that AfT inflows exert a positive and significant impact on recipient countries’ export ratios LOW and HIGH, but not on the MEDIUM export ratio. For LDCs, AfT inflows influence positively LOW and negatively MEDIUM and HIGH. Furthermore, for both the full sample and LDCs, there is a strong positive effect of the cumulative AfT inflows on the three export ratios. Finally, the effect of AfT inflows on export ratios appears to be dependent on the degree of trade policy liberalisation. JEL: F13, F14, F35, O24

Does Poverty Matter for Tax Revenue Performance in Developing Countries?

South Asian Journal of Macroeconomics and Public Finance ◽

10.1177/22779787211033506 ◽

2021 ◽

pp. 227797872110335

Author(s):

Sèna Kimm Gnangnon

Keyword(s):

Developing Countries ◽

Developed Countries ◽

Jel Classification ◽

Development Aid ◽

Tax Revenue ◽

Data Set ◽

Performance Effect ◽

Generalized Methods Of Moments ◽

Negative Effect

This article explores the effect of poverty on tax revenue performance (tax revenue share), using an unbalanced panel data set of 102 developing countries over the period from 1996 to 2015. Based on the two-step system generalized methods of moments (GMM) approach, the empirical analysis shows that higher poverty rates significantly reduce tax revenue performance in developing countries. However, the magnitude of this negative effect is lower in least developed countries (LDCs) than in other countries of the sample. The analysis has also revealed that the tax revenue performance effect of poverty depends on the level of household consumption as well as the prevailing unemployment rate in the economy. Finally, development aid inflows help to mitigate the negative effect of poverty on tax revenue performance in developing countries. These findings not only highlight the importance of poverty for tax revenue performance in developing countries, but they additionally show that the provision of higher amounts of development aid to these countries could help them mitigate the adverse tax revenue effect of poverty, and even allow them to enjoy higher tax revenue performance, which is key for attaining their development objectives. JEL Classification: I30, I32, H20

Effect of Productive Capacities on Economic Complexity: Do Aid for Trade flows Matter?

10.21203/rs.3.rs-257879/v1 ◽

2021 ◽

Author(s):

Sèna Kimm GNANGNON

Keyword(s):

Scale Up ◽

Developed Countries ◽

Economic Complexity ◽

Generalized Methods Of Moments ◽

Aid For Trade ◽

Low Levels ◽

Methods Of Moments ◽

First Time ◽

Abstract The COVID-19 health pandemic has exposed the strong vulnerabilities of countries, including developing ones to shocks, and underlined the need for exploring ways to strengthen countries' resilience to future shocks. The current paper uses the dataset made recently available by the United Nations Conference on Trade and Development (UNCTAD) to examine (for the first time) the effect of productive capacities on economic complexity. The analysis further investigates whether Aid for Trade (AfT) flows matter for the influence of productive capacities on economic complexity in recipient-countries. The analysis uses a sample of 126 countries (including both developed and developing countries) over the period 2002-2018, and adopts the two-step system Generalized Methods of Moments (GMM) approach. Results have shown that productive capacities exert a positive effect on economic complexity over the full sample. However, the magnitude of this positive effect varies across different sub-samples, with Least developed countries (LDCs) enjoying the lowest magnitude of this positive effect. Furthermore, total AfT flows are positively associated with economic complexity, with LDCs enjoying a higher positive effect than other countries. Interestingly, total AfT flows exert a higher positive effect on economic complexity in countries that experience low levels of overall productive capacities. The latter finding highlights the need for donor-countries to scale-up AfT flows in favour of countries (such as LDCs) that are characterized by low levels of productive capacities. Finally, the empirical outcomes indicate that productive capacities enhance economic complexity in countries that receive higher amounts of total NonAfT flows.

Effect of Aid for Trade Unpredictability on Trade Policy in Recipient-Countries

Arthaniti-Journal of Economic Theory and Practice ◽

10.1177/0976747919876708 ◽

2019 ◽

Vol 19 (2) ◽

pp. 177-203

Author(s):

Sèna Kimm Gnangnon

Keyword(s):

Trade Policy ◽

Developed Countries ◽

Trade Policies ◽

Restrictive Trade ◽

Negative Effect ◽

Aid For Trade ◽

This article examines the effect of the unpredictability of Aid for Trade (AfT) flows on trade policy in 124 recipient-countries, of which 42 are least developed countries (LDCs), over the period 2002–2016. The analysis shows that while AfT flows exert a positive effect on trade policy liberalisation, AfT unpredictability induces the adoption of restrictive trade policies. These results apply to LDCs and other countries, although the magnitude of the negative effect of AfT unpredictability on trade policy liberalisation is higher for LDCs than for other countries. Furthermore, AfT unpredictability reduces the positive trade policy liberalisation effect of AfT flows. JEL: F13, F14, F35

Doha Development Agenda and Aid for Trade -- Supplement

Policy Papers ◽

10.5089/9781498330848.007 ◽

2005 ◽

Vol 2005 (11) ◽

Cited By ~ 1

Author(s):

Keyword(s):

Developing Countries ◽

Developed Countries ◽

Doha Round ◽

Consultation Process ◽

Development Agenda ◽

Main Paper ◽

Aid For Trade ◽

Development Committee

At their 2005 Spring meetings, the Development Committee and IMFC called on the Bank and Fund to work with others to develop more detailed proposals, for consideration at the Annual Meetings, to help developing countries adjust to and take advantage of the Doha Round. In response, Bank and Fund staff prepared a paper on “The Doha Development Agenda and Aid for Trade” following a consultation process with donors and least developed countries (LDCs) during the summer. This is a Supplement to the main paper.

The Real Winners in Aid for Trade: An Economic Analysis

Policy Perspectives ◽

10.4079/pp.v27i0.3 ◽

2020 ◽

Vol 27 ◽

Author(s):

Timothy Wolf Barham

Keyword(s):

Developing Countries ◽

Developed Countries ◽

Global Poverty ◽

Unintended Effects ◽

Limited Evidence ◽

Assistance Programs ◽

The Past ◽

Aid For Trade ◽

Poverty Levels

Over the past two decades, hundreds of billions of dollars have been spent on official development assistance programs to assist developing countries around the world through the Aid for Trade (AfT) initiative. Although the goal of the AfT initiative is to reduce global poverty levels, there is limited evidence that AfT actually reduces poverty. While positive economic growth linked to AfT programs can be seen in both developed and developing countries, developed countries do not experience the same downfalls of international trade as the least developed countries. This article reviews existing research on the AfT initiative, the winners and losers of such agreements, and the potential policy vehicles that can be used by participating governments and organizations to mitigate the unintended effects of AfT.

FORMATION OF INTERNATIONAL COMPETITIVENESS OF THE REGION ON THE BASIS OF THE INNOVATION AND INVESTMENT MODEL OF DEVELOPMENT IN CHINA

International scientific journal Internauka Series Economical Sciences ◽

10.25313/2520-2294-2021-1-6817 ◽

2017 ◽

Author(s):

Alina Lytvynenko ◽

◽

Elena Lytvynenko ◽

Keyword(s):

Developing Countries ◽

Regional Integration ◽

Negative Impact ◽

Developed Countries ◽

Investment Model ◽

Modern China ◽

Trade Relations ◽

The World ◽

Leading Position ◽

Business Structures

The article discusses the key issues of achieving the goals of modernization, namely, China's interaction with the world economy. Chinese economists believe that the process of globalization cannot be stopped, but it can be radically changed and directed to the benefit of China's economy, most likely with the help of transnational corporations. The revitalization of integration processes among developing countries has been observed against the backdrop of the successful development of the Western European model of economic integration. In this way, integration first affected the sphere of production and then the sphere of mutual trade. The article substantiates the necessity and possibility of adaptation to the changing economic conditions and innovative development of business structures operating in international business and the proposal of specific schemes for their construction in accordance with the world markets requirements. Notice that, there is a change in the principles of regional integration development at the present stage. Developing countries are actively seeking to participate in integration processes, since the leading powers prefer to use territorial disputes in their foreign policy and there is a risk of potential threats from border states. For centuries, China has held the leading position in the world in terms of quality of life. However, modern China is not one of the developed countries in any of the established classifications, and therefore the current work explores the modernization theories of the economies of developing countries. The COVID-19 pandemic has had a negative impact on the entire world trade, production, trade and logistics chains have been destroyed, stock indices are declining, industrial production has been suspended, oil prices have collapsed, demand for goods is reorienting. Since China is the main trade partner of Ukraine and many Ukrainian enterprises are associated with the PRC by purchasing both goods or components for their production, it clearly will not affect our trade relations for the better.

Developing And Developed Countries

A systematic literature review of lean manufacturing implementation in manufacturing-based sectors of the developing and developed countries

International Journal of Lean Six Sigma ◽

10.1108/ijlss-12-2020-0223 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Catherine Maware ◽

Modestus Okechukwu Okwu ◽

Olufemi Adetunji

Keyword(s):

Developing Countries ◽

Literature Review ◽

Lean Manufacturing ◽

Negative Impact ◽

Developed Countries ◽

Manufacturing Industries ◽

Preliminary Review ◽

Content Type ◽

Manufacturing Organizations ◽

Purpose This study aims to comparatively discuss the effect of lean manufacturing (LM) implementation in the manufacturing sectors of developing and developed countries. Design/methodology/approach An in-depth literature review focused on previous research published between 2015 and March 2020. The papers published by the databases such as Google Scholar, Scopus, ProQuest and Web of Science were used in the study. A total of 63 studies that focused on LM application in manufacturing industries in developing and developed countries were used in the research. Findings It was observed that LM improves operational performance for manufacturing organizations in developing and developed countries. Small and medium-sized enterprises in both developed and developing countries have difficulties transforming their organizations into lean organizations compared to large enterprises. Furthermore, the review also found that there seems to have been no paper had reported the negative impact of implementing LM in manufacturing industries in developing and developed countries from 2015 to March 2020. Research limitations/implications The study used research papers written between January 2015 and March 2020 and only considered manufacturing organizations from developed and developing nations. Practical implications The study provides more insight into LM implementation in developing and developed countries. It gives the LM practices and the implications of applying these practices in manufacturing organizations for developing and developed countries. Originality/value A preliminary review of papers indicated that this seems to be the first paper that comparatively studies how LM implementation has affected manufacturing organizations in developed and developing countries. The study also assessed the LM practices commonly used by the manufacturing industries in developing and developed countries.

Taxing impact of terrorism on global economic openness of developed and developing countries

Acta Oeconomica ◽

10.1556/032.2018.68.3.1 ◽

2018 ◽

Vol 68 (3) ◽

pp. 311-335

Author(s):

Abubakr Saeed ◽

Yuhua Ding ◽

Shawkat Hammoudeh ◽

Ishtiaq Ahmad

Keyword(s):

Developing Countries ◽

Negative Impact ◽

Developed Countries ◽

Terrorist Attacks ◽

Economic Openness ◽

Significant Negative Impact ◽

Military Expenditures ◽

The Developed Countries ◽

The Impact ◽

The Relationship

This study examines the relationship between terrorism and economic openness that takes into account both the number and intensity of terrorist incidents and the impact of government military expenditures on trade-GDP and foreign direct investment-GDP ratios for both developed and developing countries. It uses the dynamic GMM method to account for endogeneity in the variables. Deaths caused by terrorism have a significant negative impact on FDI flows, and the number of terrorist attacks is also found to be significant in hampering the countries’ ability to trade with other nations. The study also demonstrates that the developing countries exhibit almost similar results to our main analysis. The developed countries exhibit a negative impact of terrorism, but the regression results are not significant.

How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

Review of Applied Management and Social Sciences ◽

10.47067/ramss.v4i2.155 ◽

2021 ◽

Vol 4 (2) ◽

pp. 547-558

Author(s):

Hamza Saleem ◽

Fatima Farooq ◽

Muhammad Aurmaghan

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Panel Data ◽

Income Inequality ◽

Negative Impact ◽

Positive Impact ◽

Development Indicators ◽

The Relationship ◽

Positive Effect ◽

World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.