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| Content Provider | OECD iLibrary |
|---|---|
| Organization | OECD |
| Abstract | This chapter explores the effectiveness of aid for trade in promoting trade – both exports and imports – and conditions which tend to make it most effective. The review provides abundant evidence to suggest that aid for trade is indeed broadly correlated with increases in trade. Aid for trade works best when it is focused on reducing the costs of trading through improvements in infrastructure, trade facilitation, trade-related public institutions (such as customs, standards administration, and export promotion), and polices (including eliminating policy barriers to competition). Aid for trade – in varying forms – directed to low income countries is particularly helpful in promoting trade. Analysis in this chapter suggests that aid for trade destined to low and lower-middle income countries is likely to have a high pay-off. Typically, one dollar invested in aid for trade is associated with an increase of nearly USD 8 of exports from all developing countries – while one dollar of aid for trade to International Development Association (IDA)-eligible poorest countries amounted to US 20 in new exports and to USD 9 for all low and lower-middle income countries. |
| Page Count | 27 |
| Starting Page | 145 |
| Ending Page | 171 |
| Language | English |
| Publisher | OECD Publishing |
| Publisher Date | 2013-07-08 |
| Access Restriction | Open |
| Subject Keyword | Development Trade |
| Content Type | Text |
| Resource Type | Chapter |
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