Are Bilateral and Multilateral Aid for Trade Complementary? Accounts from Africa
نویسنده
چکیده
We examine the impact of aid for trade (AFT) on bilateral trade costs of African Nations. Using a comprehensive bilateral trade cost data from Arvis et al. (2013) and focusing on AFT recipients in Africa spanning the years 2002-2010, we show that increased AFT reduces bilateral trading costs, more so for the recipient’s trade with each other than recipients’ trade with their donors. Despite differences in the magnitudes of the observed effects across recipients and the economic sectors considered, the trade costs reduction effect of AFT from bilateral and multilateral sources rises with increases in the amount of AFT from either sources, indicating complementarity in the effects. JEL: F1, F3, C5
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