Nowak-Lehmann, Felicitas; Martínez-Zarzoso, Inmaculada; … - In: Review of World Economics (Weltwirtschaftliches Archiv) 149 (2013) 3, pp. 505-535
This paper uses the gravity model of trade to investigate the effect of foreign aid on exports of aid recipients to … donor countries. Most of the theoretical work emphasises the possible negative impact of aid on recipient countries’ exports … endogeneity bias, we find that the net effect of aid on recipient countries’ exports is insignificant, both for our sample (of 123 …