Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320560 
Year of Publication: 
2025
Series/Report no.: 
IDOS Discussion Paper No. 17/2025
Publisher: 
German Institute of Development and Sustainability (IDOS), Bonn
Abstract: 
Access to critical raw materials (CRMs) is increasingly being shaped by geopolitical dynamics, fuelling a global competition for supply security. This paper applies the gravity model of trade to examine how OECD countries leverage Aid for Trade (AfT), Bilateral Investment Treaties (BITs), and Preferential Trade Agreements (PTAs) to influence CRM imports from developing countries. Using extensive bilateral panel data from 1995 to 2023, we find that PTAs are particularly effective, affecting both the intensive and extensive margins of trade. These findings highlight the strategic role of formal trade agreements and suggest that a coordinated policy mix of trade diplomacy, investment, and aid is essential for resilient and diversified CRM supplies.
Subjects: 
Aid for Trade
Bilateral Investment Treaties
critical raw materials
extensive margin
intensive margin
gravity model
Preferential Trade Agreements
JEL: 
F13
F14
F15
F21
F35
F53
Persistent Identifier of the first edition: 
ISBN: 
978-3-96021-262-1
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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