The aim of this article is to investigate whether there is a long-run relationship (cointegration) between exports and imports for 22 least developed countries (LDCs). This is an important issue, for evidence of cointegration will ensure that trade imbalances are sustainable. The article...

This paper uses an augmented gravity model of trade to investigate the link between German development aid and sectoral exports from Germany to the aid recipient countries. The findings indicate that in the long run each dollar of German aid is associated with an average increase of 0.83 US...