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Impact of multilateral trade liberalization and aid for trade for productive capacity building on export revenue instability

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  • Gnangnon, Sèna Kimm

Abstract

This paper investigates the impact of multilateral trade liberalization (MTP) and Aid for Trade (AFT) for productive capacity building on export revenue instability in developing countries. The empirical analysis covers 119 countries over the period 2002–2013. Using the within fixed effects estimator, it shows that both MTP and AFT for productive capacity building exert a reducing impact on export revenue instability. However, these two impacts are dependent on countries’ level of development. Furthermore, the higher the level of AFT for productive capacity building (in % GDP), the greater the magnitude of the negative impact of MTP on export revenue instability.

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  • Gnangnon, Sèna Kimm, 2018. "Impact of multilateral trade liberalization and aid for trade for productive capacity building on export revenue instability," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 141-152.
    • Handle: RePEc:eee:ecanpo:v:58:y:2018:i:c:p:141-152
    DOI: 10.1016/j.eap.2018.02.002
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    Cited by:

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    More about this item

    Keywords

    Multilateral trade liberalization; Aid for trade for productive capacity building; Export revenue instability;
    All these keywords.

    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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