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GTAP Resource #3311

"Surmounting Africas Trade Capacity Contraints: An Assessment of the Effectiveness of Aid for Trade"
by Karingi, Stephen

Africa has consistently underperformed both in trade and economic growth relative to other developing countries. Against this admission, both aid donors and aid recipients seem to agree that Aid for Trade is a way in assisting African countries to overcome their binding trade constraints and ensure their effective participation in the global trading system. Despite its importance, it is still an open question on how effective Aid for Trade is in improving trade-related outcomes. While there are several studies that have looked at the rationale of Aid for Trade, there is hardly any quantitative empirical evidence on its impact; especially for Africa, the most marginalized region in the world. This paper is one amongst few stabs to fill this gap on the effects Aid for Trade on trade capacity constraints and trade performance outcome for the case of Africa. Using data on specific categories of aid for trade, which is matched with specific desired trade-related outcomes, and applying ex post econometric analysis, we assess whether Aid for Trade in Africa has had any significant impact. The findings of this study seems to suggest that aid for trade in Africa, controlling for other factors, matters both for addressing trade capacity constraints and promoting trade. As we found that Aid for Trade reduces cost of trading, promote export diversification as well as improving Africa’s trade competitiveness. This therefore has serious policy implications for Africa as whole and individual countries in particular if they are to benefit from trade reforms.

Resource Details (Export Citation) GTAP Keywords
Category: 2010 Conference Paper
Status: Published
By/In: Presented at the 13th Annual Conference on Global Economic Analysis, Penang, Malaysia
Date: 2010
Created: Karingi, S. (4/15/2010)
Updated: Batta, G. (5/27/2010)
Visits: 1,452
- Economic growth
- Economic development
- Africa (North)
- Africa (Central)
- Africa (East)
- Africa (West)
- Africa (Southern)

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