IDEAS home Printed from https://ideas.repec.org/p/zbw/wtowps/ersd201605.html
   My bibliography  Save this paper

Reducing trade costs in LDCs: The role of Aid for Trade

Author

Listed:
  • Lanz, Rainer
  • Roberts, Michael
  • Taal, Sainabou

Abstract

This study analyses the role of Aid for Trade in reducing trade costs in least developed countries (LDCs). The analysis builds on questionnaires and case stories submitted as part of the Aid-for-Trade monitoring and evaluation exercise for the Fifth Global Review of Aid for Trade. Trade costs are high in LDCs and constitute a major impediment to their participation in international trade. The most important sources of trade costs in LDCs are inadequate transport infrastructure, cumbersome border procedures and compliance with non-tariff measures for merchandise exports. In the case of LDC services exports, major drivers of trade costs include ICT networks, poor regulation, low skill levels, the recognition of professional qualifications and restrictions on the movement of natural persons. LDCs are well aware of the issue of high trade costs, which is addressed by more than 90% of LDCs in their national strategies. Trade facilitation is the top Aid-for-Trade priority for LDCs, which is also reflected in increasing Aid-for-Trade flows. The analysis of questionnaires, case stories, diagnostic trade integration studies and existing econometric work illustrates the important role played by Aid-for-Trade interventions in lowering trade costs in LDCs.

Suggested Citation

  • Lanz, Rainer & Roberts, Michael & Taal, Sainabou, 2016. "Reducing trade costs in LDCs: The role of Aid for Trade," WTO Staff Working Papers ERSD-2016-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:ersd201605
    DOI: 10.30875/3f9d78f0-en
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/144180/1/863305318.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.30875/3f9d78f0-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Olivier Cadot & Ana Fernandes & Julien Gourdon & Aaditya Mattoo & Jaime Melo, 2014. "Evaluating Aid for Trade: A Survey of Recent Studies," The World Economy, Wiley Blackwell, vol. 37(4), pages 516-529, April.
    2. Calì, Massimiliano & te Velde, Dirk Willem, 2011. "Does Aid for Trade Really Improve Trade Performance?," World Development, Elsevier, vol. 39(5), pages 725-740, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Beata Udvari, 2016. "The Aid for Trade initiative and the export performance of the Iberian EU-countries," IWE Working Papers 225, Institute for World Economics - Centre for Economic and Regional Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bernard Hoekman & Anirudh Shingal, 2020. "Aid for trade and international transactions in goods and services," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 320-340, May.
    2. Yu Ri Kim, 2019. "Does aid for trade diversify the export structure of recipient countries?," The World Economy, Wiley Blackwell, vol. 42(9), pages 2684-2722, September.
    3. Hoekman, Bernard & Shingal, Anirudh, 2024. "Development Goals, commercial interest and EU Aid-for-Trade," World Development, Elsevier, vol. 173(C).
    4. Hyo Won Lee & Youngwan Kim, 2020. "Impacts of tangible and intangible elements of Aid for Trade on the globalisation of developing countries," The World Economy, Wiley Blackwell, vol. 43(8), pages 2153-2171, August.
    5. Léopold BIARDEAU & Anne BORING, 2017. "L’impact de l’aide au développement sur les flux commerciaux entre pays donateurs et pays récipiendaires," Working Paper 464d860e-562e-4ae7-98f5-1, Agence française de développement.
    6. Samuel Brazys & Johan A. Elkink, 2021. "“Aid for Trade” Effectiveness? Micro-level Evidence from Nepal," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1493-1513, December.
    7. Dreher, Axel & Fuchs, Andreas & Langlotz, Sarah, 2019. "The effects of foreign aid on refugee flows," European Economic Review, Elsevier, vol. 112(C), pages 127-147.
    8. Peter Nunnenkamp & Rainer Thiele, 2013. "Financing for Development: The Gap between Words and Deeds since Monterrey," Development Policy Review, Overseas Development Institute, vol. 31(1), pages 75-98, January.
    9. Gnangnon, Sèna Kimm, 2023. "Effect of Aid for Trade on Recipient-Countries' Participation in Global Value Chains," EconStor Preprints 279713, ZBW - Leibniz Information Centre for Economics.
    10. Gnangnon, Sèna Kimm, 2023. "Duration of membership in the world trade organization and investment-oriented remittances inflows," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 258-277.
    11. Gnangnon, Sèna Kimm, 2022. "Duration of WTO Membership and Investment-Oriented Remittances Flows," EconStor Preprints 251274, ZBW - Leibniz Information Centre for Economics.
    12. 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.
    13. Sana Sardar & Dilawar Khan & Alam Khan & Róbert Magda, 2022. "The Influence of Aid for Trade on Human Development in South Asia," Sustainability, MDPI, vol. 14(19), pages 1-12, September.
    14. Olivier Cadot & Ana Fernandes & Julien Gourdon & Aaditya Mattoo & Jaime Melo, 2014. "Evaluating Aid for Trade: A Survey of Recent Studies," The World Economy, Wiley Blackwell, vol. 37(4), pages 516-529, April.
    15. Hyun‐Hoon Lee & Donghyun Park & Meehwa Shin, 2015. "Do Developing‐country WTO Members Receive More Aid for Trade (AfT)?," The World Economy, Wiley Blackwell, vol. 38(9), pages 1462-1485, September.
    16. Takumi Naito, 2016. "Aid for Trade and Global Growth," Review of International Economics, Wiley Blackwell, vol. 24(5), pages 1178-1201, November.
    17. Chandan Kumar Roy & Huang Xiaoling, 2020. "Effects of Paperless Trade Policy and Aid for Trade on Export Performance: Evidence from SASEC And CAREC Countries," Asian Development Policy Review, Asian Economic and Social Society, vol. 8(1), pages 61-74, March.
    18. Fuchs, Andreas & Dreher, Axel & Nunnenkamp, Peter, 2014. "Determinants of Donor Generosity: A Survey of the Aid Budget Literature," World Development, Elsevier, vol. 56(C), pages 172-199.
    19. Anirudh Shingal, 2023. "Mode 4 restrictiveness and services trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(3), pages 757-786, August.
    20. Fahmida Khatun & Samina Hossain & Nepoleon Dewan, 2013. "Evaluating Aid for Trade on the Ground: Lessons from Bangladesh," CPD Report 5, Centre for Policy Dialogue (CPD).

    More about this item

    Keywords

    trade costs; aid for trade; trade facilitation; least developed countries;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:wtowps:ersd201605. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wtoerch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.