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 language | English |
|---|---|
| Pages (from-to) | 668-673 |
| Number of pages | 6 |
| Journal | Applied Economics Letters |
| Volume | 25 |
| Issue number | 10 |
| Early online date | 7 Jun 2018 |
| DOIs | |
| Publication status | Published - 2018 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
Keywords
- Aid for trade
- exports
- quality
- quality ladder
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