Pettersson, Jan; Johansson, Lars - In: The Journal of International Trade & Economic Development 22 (2013) 6, pp. 866-894
In a gravity model for 184 countries between 1990 and 2005, we show that bilateral aid is not only positively correlated with donor exports, as suggested in earlier studies, but also positively associated with recipient exports to donors. Our interpretation is that an intensified aid relation...