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Title:Aid and trade: A donor's perspective PDF Logo
Authors:Nowak-Lehmann D., Felicitas
Martínez-Zarzoso, Inmaculada
Klasen, Stephan
Herzer, Dierk
Issue Date:2008
Series/Report no.:Discussion papers // Ibero America Institute for Economic Research 171
Abstract:Foreign aid is given for a combination of economic, political, and humanitarian motives. While its impact on economic development in recipient countries has been the main focus of research recently, we concentrate on the question to what extent it also promotes donor countries’ exports. We examine this issue using Germany as a case study where the positive impact of aid on exports has been found to be extremely high. Using more advanced methods, we compute an average return (between EUR 1.49 to EUR 1.72) of one EUR of aid spent, well below previous findings, but still surprisingly large and robust.
Subjects:bilateral aid
donors' exports
time series properties of panel data
ECM and DOLS estimation in a panel context
JEL:F14
F35
C23
Document Type:Working Paper
Appears in Collections:Discussion Papers, IAI, Universität Göttingen

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