This paper investigates whether Aid for Trade (AfT) improves export performance, i.e. does AfT lead to greater exports? Using panel data and panel quantile regression, our results suggest that overall AfT disbursements promote the export of goods and services mainly for the .50 and .75...

The paper discusses the International Finance Facility (IFF), a joint HM Treasury–DFID proposal to increase development aid substantially for the Millennium Development Goals to be achieved by 2015. The main conclusion of the paper is that the proposed IFF is a promising, forward-looking and...

This paper uses a static and dynamic gravity model of trade to investigate the link between German development aid and exports from Germany to the recipient countries. The findings indicate that in the long run,German aid is associated with an increase in exports of goods that is larger than the...

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...