Description
Title: A Reference to Aid for Trade and Export Resilience in Developing Countries
Abstract: Similar to previous major crises like the financial crisis of 2008, the COVID-19 pandemic has had a detrimental effect on global trade flows. By analyzing the impact of development aid (also known as “official development assistance”), especially the impact of the Aid for Trade (AfT) component, upon export resilience, the current paper seeks to contribute to the discussion about how to foster resilience against future crises in terms of countries’ aggregate exports. The ability of a country’s overall exports to withstand shocks, whether they are external or environmental shocks, is referred to as export resilience. The analysis’s main claim is that by influencing productive capacities, development aid would have an impact on export resilience. The analysis spans the years 2002–2018 and examines 93 developing nations. According to the findings, export resilience is positively impacted by all development aid flows, including AfT and NonAfT flows. Compared to AfT for economic infrastructure and AfT for trade policy and regulation, AfT for productive capacities seems to have a greater positive impact on export resilience. Additionally, development aid has the greatest positive impact on export resilience in nations with the lowest levels of productivity, such as least developed countries (LDCs), regardless of the type of aid variable taken into account. These findings demonstrate the necessity for donor nations to increase development aid flows, particularly AfT flows, to low-productivity countries like LDCs.
Keywords: export resilience; development aid; productive capacities; developing countries
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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