Towards a Quantitative Assessment of Aid for Trade

image of Towards a Quantitative Assessment of Aid for Trade

This Economic Paper presents, for the first time, quantitative evidence of the effectiveness of Aid for Trade, the initiative to promote development by providing resources targeted at boosting involvement in international trade by developing countries. It suggests which types of Aid for Trade measures are likely to be particularly effective.



Empirical Results

Table 4.1 presents the estimation results of the equation for costs of trading (exporting first) in 2008. We focus on this variable because it has an obvious relation to trade, but it is straightforward from a statistical point of view to examine some other indicators as well. The costs of trading variables are not particularly suitable for constructing time series due to data availability, so we focus on one year. We estimate equation (1) for a cross-section of around 120 developing countries.


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