Aid and Trade - An Empirical Analysis of the Impact of European Development Aid on Donor’s Exports
(2023) NEKN01 20231Department of Economics
- Abstract
- This study examines the relationship between development aid and trade, specifically focusing on the impact of aid on exports for 14 European donor countries committed to allocating 0.70% of their Gross National Income (GNI) to official development assistance (ODA). The 14 selected countries account for 41.5% of global ODA disbursements. Estimating a structural gravity model using Pseudo Poisson Maximum Likelihood estimators and panel data covering the period from 1995 to 2021, the findings reveal a significant and positive relationship between European development aid and donor’s exports. One US$ more spent on development aid leads to an increase in exports of 0.19 US$ on average. Our findings show that the effect of aid on exports... (More)
- This study examines the relationship between development aid and trade, specifically focusing on the impact of aid on exports for 14 European donor countries committed to allocating 0.70% of their Gross National Income (GNI) to official development assistance (ODA). The 14 selected countries account for 41.5% of global ODA disbursements. Estimating a structural gravity model using Pseudo Poisson Maximum Likelihood estimators and panel data covering the period from 1995 to 2021, the findings reveal a significant and positive relationship between European development aid and donor’s exports. One US$ more spent on development aid leads to an increase in exports of 0.19 US$ on average. Our findings show that the effect of aid on exports increases with more intense aid relationships Further, we apply several robustness checks to underpin our findings. (Less)
- Popular Abstract
- This study examines the relationship between development aid and trade, specifically focusing on the impact of aid on exports for 14 European donor countries committed to allocating 0.70% of their Gross National Income (GNI) to official development assistance (ODA). The 14 selected countries account for 41.5% of global ODA disbursements. Estimating a structural gravity model using Pseudo Poisson Maximum Likelihood estimators and panel data covering the period from 1995 to 2021, the findings reveal a significant and positive relationship between European development aid and donor’s exports. One US$ more spent on development aid leads to an increase in exports of 0.19 US$ on average. Our findings show that the effect of aid on exports... (More)
- This study examines the relationship between development aid and trade, specifically focusing on the impact of aid on exports for 14 European donor countries committed to allocating 0.70% of their Gross National Income (GNI) to official development assistance (ODA). The 14 selected countries account for 41.5% of global ODA disbursements. Estimating a structural gravity model using Pseudo Poisson Maximum Likelihood estimators and panel data covering the period from 1995 to 2021, the findings reveal a significant and positive relationship between European development aid and donor’s exports. One US$ more spent on development aid leads to an increase in exports of 0.19 US$ on average. Our findings show that the effect of aid on exports increases with more intense aid relationships Further, we apply several robustness checks to underpin our findings. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9118389
- author
- Endres, Kai LU and Greally, Cathal Patrick
- supervisor
- organization
- course
- NEKN01 20231
- year
- 2023
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- gravity model, development aid, exports, PPML, fixed effects, trade
- language
- English
- id
- 9118389
- date added to LUP
- 2023-09-12 15:38:04
- date last changed
- 2023-09-12 15:38:04
@misc{9118389, abstract = {{This study examines the relationship between development aid and trade, specifically focusing on the impact of aid on exports for 14 European donor countries committed to allocating 0.70% of their Gross National Income (GNI) to official development assistance (ODA). The 14 selected countries account for 41.5% of global ODA disbursements. Estimating a structural gravity model using Pseudo Poisson Maximum Likelihood estimators and panel data covering the period from 1995 to 2021, the findings reveal a significant and positive relationship between European development aid and donor’s exports. One US$ more spent on development aid leads to an increase in exports of 0.19 US$ on average. Our findings show that the effect of aid on exports increases with more intense aid relationships Further, we apply several robustness checks to underpin our findings.}}, author = {{Endres, Kai and Greally, Cathal Patrick}}, language = {{eng}}, note = {{Student Paper}}, title = {{Aid and Trade - An Empirical Analysis of the Impact of European Development Aid on Donor’s Exports}}, year = {{2023}}, }