Unlike the average trade effect estimation of foreign aid in previous studies, this paper explores the trade effect evolution of foreign aid and provides some explanations for it by employing a two-step methodology. By using a varying-coefficient panel data model and control for the impact of...

Unlike the average trade effect estimation of foreign aid discussed in previous studies, this paper explores the trade effect evolution of foreign aid and provides some explanations for it by employing a two-step methodology: a varying-coefficient panel data gravity model and controlling for the...