The Impact of Aid for Trade on Trade Costs Facing African Economies

Bedassa Tadesse; Bichaka Fayissa; Elias Shukralla

doi:10.1007/978-3-030-75556-0_37

The Impact of Aid for Trade on Trade Costs Facing African Economies

Bedassa Tadesse, Bichaka Fayissa, Elias Shukralla

Economics (Duluth)

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

This chapter examines: (a) the impact of aid-for-trade (AFT) on trade costs borne by African countries and (b) the role that infrastructure plays in mediating the effects, and the differential impacts of AFT from bilateral (BLT) and multilateral (MLT) sources using comprehensive bilateral trade cost data and a new index of infrastructure over the 2004–2011 period. Our results from a multilevel mixed-effects model show that increased AFT disbursements to African economies (both at the aggregate level and across the sources) lead to significant reductions in the costs of trade in African countries. The findings of this study further demonstrate that the relative impact of AFT is typically more pronounced in recipients with improved infrastructure and the level of AFT disbursements received from bilateral, or multilateral sources, suggesting the need for targeting infrastructure investments for enhancing the effectiveness of aid for trade.

Original language	English (US)
Title of host publication	The Palgrave Handbook of Africa's Economic Sectors
Publisher	Springer International Publishing
Pages	943-975
Number of pages	33
ISBN (Electronic)	9783030755560
ISBN (Print)	9783030755553
DOIs	https://doi.org/10.1007/978-3-030-75556-0_37
State	Published - Jan 1 2022

Bibliographical note

Publisher Copyright:
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.

Keywords

Aid-for-Trade
Mixed-effects model
Trading costs

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/978-3-030-75556-0_37

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AU - Fayissa, Bichaka

AU - Shukralla, Elias

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The Impact of Aid for Trade on Trade Costs Facing African Economies

Abstract

Bibliographical note

Keywords

UN SDGs

Publisher link

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