“Aid for Trade” Effectiveness? Micro-level Evidence from Nepal

This paper considers the extent to which the ‘Aid for Trade’ (AfT) initiative has been effective in promoting improved export outcomes at the firm level. Specifically, the paper uses geo-referenced data on AfT projects from the AidData database and firm activity from a survey of nearly 150 exporting...

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Bibliographic Details
Published in:European journal of development research 2021-12, Vol.33 (6), p.1493-1513
Main Authors: Brazys, Samuel, Elkink, Johan A.
Format: Article
Language:English
Subjects:
Development and Social Change
Development Economics
Development Policy
Development Studies
Export performance
Exports
Foreign aid
International relations
International trade
Original Article
Proximity
Social Sciences
Trade
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Summary:This paper considers the extent to which the ‘Aid for Trade’ (AfT) initiative has been effective in promoting improved export outcomes at the firm level. Specifically, the paper uses geo-referenced data on AfT projects from the AidData database and firm activity from a survey of nearly 150 exporting firms in Nepal to spatially identify impacts of the projects on export performance. We find qualified evidence that proximity to (more) AfT projects improves export performance but that some projects may be more effective than others. These findings are supplemented by interviews with 21 exporting firms. The results suggest that the research approach could be utilized more broadly to draw more generalized conclusions about AfT and firm export performance.
ISSN:0957-8811
1743-9728
DOI:10.1057/s41287-020-00296-7