One reason donors provide foreign aid is to support their exports to aid-recipient countries. Time series data for Germany suggests an average return of between US$ 1.04 to US$ 1.50 for each US dollar of aid spent by Germany. Although this is well below previous estimates, the value is robust to...

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...

Our empirical estimations indicate that aid-for-trade granted by OECD donors strengthens the trade relations of recipient countries with other developing countries. By focusing on South-South trade we mitigate endogeneity concerns that have plagued analyses of trade between recipients and donors...

Considering that primary commodity dependence continues to be a major problem of various lower income countries, we analyze whether Aid for Trade (AfT) has helped recipient countries upgrade and diversify their exports. Estimating an asymmetric and aggregated gravity model, we find that AfT has...

In the 2013/14 budget, the Minister of Finance made a surprise announcement: the decision to merge CIDA with the (renamed) Department of Foreign Affairs, Trade and Development. A sensible move? If the intent is to link CIDA projects to Canadian resource developments overseas, probably no. If the...

In the past few years, the volumes of Russia's aid to foreign states remained high. Also, substantial growth was observed in the share of the bilateral development aid (when the aid is channeled directly to the recipient) as compared to the multilateral aid (when it is provided through...