Effectiveness of Aid for Trade in Small and Vulnerable Economies

An Empirical Assessment

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Effectiveness of Aid for Trade in Small and Vulnerable Economies

Series Title: Economic Paper Series
Number within series: 91
Publication date: 15 March 2011
Size: 240mm x 165mm
ISBN: 978-1-84929-048-7
Pages: 90

This Economic Paper presents the first analyses of the use and effectiveness of Aid for Trade (AfT), the initiative to help developing countries boost their involvement in the global economy, for small and vulnerable economies (SVEs). It examines in detail the extent to which SVEs have been able to access AfT funds and to what extent this assistance has helped them to improve their trade performance.

Well designed trade-related assistance will help SVEs face the challenges posed by their characteristics, particularly when the prospects for small states have been deteriorating further due to preference erosion and the emergence of new and large competitors.

ContentsExpand or collapse me

1. Background and motivation

2. The rationale behind aid for trade in SVEs

3. How SVEs can access aid for trade
3.2 Types of programmes available
3.3 Eligibility criteria and implementation

4. Patterns of aid for trade
4.1 Current and past flows by recipient
4.2 Current and past flows by donor
4.3 AfT to SVEs

5. How aid for trade could help SVEs integrate in the global economy
5.1 A simple model
5.2 How effective have the programmes been?

6. Empirical analysis on the effects of aid for trade on SVEs
6.1 The empirical models
6.2 Data
6.3 Results

7. Conclusions and policy implications

Tables and Charts

Annex 1 Aid for Trade projects in SVEs
Annex 2 Defining “Trading Across Borders”