Nowak-Lehmann D., Felicitas; Martínez-Zarzoso, Inmaculada - 2009
One reason donors provide foreign aid is to support their exports to aid-recipient countries. Time series data for … members significantly reduces exports from Germany to the recipients. The evidence suggests that, in the long-run, aid causes … exports and not vice versa. We discuss the implications these findings might have for aid volumes and allocation. …