Aid and trade
Subtitle: a donor's perspective
By: Felicitas Nowak-Lehmann D. ... [et al.]
Series: Diskussionsbeiträge // Ibero-Amerika Institut für Wirtschaftsforschung -- 171; Diskussionsbeiträge (Universität Göttingen. Ibero-Amerika Institut für Wirtschaftsforschung) -- no. 171
Publisher: Ibero-Amerika-Inst. für Wirtschaftsforschung
Published: 2008
Place of publication: Göttingen
Language: eng
Number of pages: 29
Subjects: (DE-601)091354749; (DE-601)091387892; (DE-601)091358825; (DE-601)09135742X; (DE-601)091364256; (DE-601)091368464; (DE-601)09140648X; (DE-601)091357373; Exports; Foreign economic relations; Economic conditions
Description: Foreign aid is given for a combination of economic, political, and humanitarian motives. While its impact on economic development in recipient countries has been the main focus of research recently, we concentrate on the question to what extent it also promotes donor countries' exports. We examine this issue using Germany as a case study where the positive impact of aid on exports has been found to be extremely high. Using more advanced methods, we compute an average return (between EUR 1.49 to EUR 1.72) of one EUR of aid spent, well below previous findings, but still surprisingly large and robust. -- bilateral aid ; donors' exports ; time series properties of panel data ; ECM and DOLS estimation in a panel context.
Notes: Cover title.

Includes bibliographical references (p. 23-26).