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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.

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The Effectiveness of Aid for Trade

We first discuss why certain types of aid should produce particular effects on trade, so that we can propose hypotheses and assess the relevance of empirical patterns in the context of Aid for Trade. Table 2.1 identifies potential market and governance failures affecting the development of trade and suggests policy responses to address these failures. It identi fies whether a proposed response could be assisted by an AfT package and what part of the package would be relevant to the task (on the basis of its current classification in the OECD Credit Reporting System (CRS) aid statistics).

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