Effectiveness of Aid for Trade in Small and Vulnerable Economies

An Empirical Assessment

image of Effectiveness of Aid for Trade in Small and Vulnerable Economies
This Economic Paper presents the first analyses of the use and effectiveness of Aid for Trade (AfT), the initiative to help developing countries boost their involvement in the global economy, for small and vulnerable economies (SVEs). It examines in detail the extent to which SVEs have been able to access AfT funds and to what extent this assistance has helped them to improve their trade performance.

Well designed traderelated assistance will help SVEs face the challenges posed by their characteristics, particularly when the prospects for small states have been deteriorating further due to preference erosion and the emergence of new and large competitors.



Patterns of aid for trade

Given the programmes available and the requirements for accessing the funds, how much aid for trade have SVEs actually received? From what donors? What type of AfT? The objective of this section is to take stock of the scale and types of aid for trade to SVEs by extracting data mainly from the OECD/DAC database. The section will examine a number of issues, such as whether SVEs are receiving different amounts or types of AfT funds relative to other developing countries; what types of activities/ sectors this aid is funding; and the distribution of funds across SVEs and over time.


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