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A causality analysis of untied foreign assistance and export performance: the case of Germany

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  • Mak Arvin
  • Bruce Cater
  • Saud Choudhry

Abstract

Three questions regarding the relationship between untied assistance and donor country exports are investigated. First, do untied aid flows cause donor country exports to increase, reflecting the goodwill of the recipient towards the donor? Second, does strong export performance financially enable or politically encourage the donor country to increase its level of untied aid to the recipient? Third, does causality proceed in both directions simultaneously? Using German data for the period 1973-1995, results vary across subsamples defined according to the recipient countries' region, income and ties to Germany.

Suggested Citation

  • Mak Arvin & Bruce Cater & Saud Choudhry, 2000. "A causality analysis of untied foreign assistance and export performance: the case of Germany," Applied Economics Letters, Taylor & Francis Journals, vol. 7(5), pages 315-319.
    • Handle: RePEc:taf:apeclt:v:7:y:2000:i:5:p:315-319
    DOI: 10.1080/135048500351465
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    Citations

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    Cited by:

    1. Akiko Suwa-Eisenmann & Thierry Verdier, 2007. "Aid and trade," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 23(3), pages 481-507, Autumn.
    2. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann D. & Stephan Klasen & Florian Johannsen, 2013. "Does German Development Aid Promote German Exports and German Employment? A Sectoral-Level Analysis," Ibero America Institute for Econ. Research (IAI) Discussion Papers 227, Ibero-America Institute for Economic Research, revised 18 Dec 2013.
    3. repec:bla:germec:v:10:y:2009:i::p:317-338 is not listed on IDEAS
    4. Matthias Helble & Catherine Mann & John Wilson, 2012. "Aid-for-trade facilitation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 357-376, June.
    5. Philipp H�hne & Birgit Meyer & Peter Nunnenkamp, 2014. "Who Benefits from Aid for Trade? Comparing the Effects on Recipient versus Donor Exports," Journal of Development Studies, Taylor & Francis Journals, vol. 50(9), pages 1275-1288, September.
    6. Barthel, Fabian & Neumayer, Eric & Nunnenkamp, Peter & Selaya, Pablo, 2014. "Competition for Export Markets and the Allocation of Foreign Aid: The Role of Spatial Dependence among Donor Countries," World Development, Elsevier, vol. 64(C), pages 350-365.
    7. Martínez-Zarzoso Inmaculada & Klasen Stephan & Nowak-Lehmann D. Felicitas & Larch Mario, 2009. "Does German Development Aid Promote German Exports?," German Economic Review, De Gruyter, vol. 10(3), pages 317-338, August.
    8. Suwa-Eisenmann, Akiko & Verdier, Thierry, 2005. "Policy coherence for development: trade policies," CEPREMAP Working Papers (Docweb) 0519, CEPREMAP.
    9. Felicitas Nowak-Lehmann D. & Inmaculada Mart�nez-Zarzoso & Stephan Klasen & Dierk Herzer, 2009. "Aid and Trade - A Donor's Perspective," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1184-1202, August.
    10. Helen V. Milner & Dustin H. Tingley, 2010. "The Political Economy Of U.S. Foreign Aid: American Legislators And The Domestic Politics Of Aid," Economics and Politics, Wiley Blackwell, vol. 22(2), pages 200-232, July.
    11. Osman S Kiratli, 2019. "Aiding together? Europeans’ attitudes on common aid policy," European Union Politics, , vol. 20(2), pages 261-281, June.

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