Working Paper: CEPR ID: DP6465
Authors: Akiko Suwa Eisenmann; Thierry Verdier
Abstract: The paper surveys the interactions between aid and trade, distinguishing between policies and outcomes as well as between various instruments. It first discusses the theoretical literature, focusing on the causal impact of aid on the recipient?s welfare via the trade channel, before turning to the empirical and institutional literature on the topic. It dentifies the main conclusions that are suggested by the literature and discusses the gaps that need to be filled out in order to get plausible policy recommendations.
Keywords: aid; development; trade
JEL Codes: F13; F35; O10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Dutch disease effect (Q33) | export competitiveness (F14) |
| tied aid (F35) | trade flows (F10) |
| tied aid (F35) | capacity for independent trade (F10) |
| trade flows (F10) | aid allocation (F35) |
| aid flows (F35) | trade flows (F10) |
| aid flows (F35) | economic growth (O49) |
| economic growth (O49) | trade flows (F10) |
| aid flows (F35) | capacity to absorb foreign goods (F10) |