Aid for trade and the quality of exports

Zheng Wang (Lead / Corresponding author), Meina Xu

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)

Abstract

This article studies how aid for trade (AfT) affects the quality of recipient countries’ exports. It shows that the quality effect is most discernible for AfT for assistance in trade policy: a 50% increase in the value of AfT received in this category is associated with a 0.5–1% increase in the quality of exports to the donor and other OECD countries. On average, the actual AfT received for assistance in trade policy leads to a 2% upgrade of the recipient country in the quality ladder of all developing countries. Around half of this quality effect is driven by the quality improvement of continued products in continued markets (intensive margin), and the other half by the quality upgrading of new products in continued markets and existing products in new markets (extensive margin).
Original languageEnglish
Pages (from-to)668-673
Number of pages6
JournalApplied Economics Letters
Volume25
Issue number10
Early online date7 Jun 2018
DOIs
Publication statusPublished - 2018

Keywords

  • Aid for trade
  • exports
  • quality
  • quality ladder

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