Felicitas Nowak-Lehmann D.; Martínez-Zarzoso, Inmaculada; … - Courant Research Centre PEG - 2010
exchange rate appreciation, disregarding possible positive effects of aid in promoting bilateral trade relations. The empirical … dollar spent. We argue that “bilateral aid” seems to promote good bilateral trade relations, mutual trust and familiarity and … that those factors reinforce bilateral trade, including recipient country exports. The paper also estimates the effect of …