Aid for Trade, export product diversification, and foreign direct investment

Abstract The few existing studies on the relationship between Aid for Trade (AfT) flows and inward foreign direct investment (FDI) tend to report a positive effect of total AfT flows, in particular aid building economic infrastructure, FDI inflows. This article aims complement these works by investigating whether stock depends recipient countries' level export product concentration. Empirical analysis has shown that exert strong countries experience high These findings are relevant developing regarding concentration their products primary commodities given role employment generation, growth, development countries.