The general understanding of international trade has been transformed over the past decade or so with the now massive body of literature developed in the context of so-called "new new trade theory" which takes into account the heterogeneity of firms and the importance of fixed costs of trade....

While recent preferential trade agreements (PTAs) cover an increasingly broad range of policy areas beyond their traditional competence for reducing bilateral tariffs, little is known about the implications of this new emphasis on interactions with other trade-related policy measures. We...

This book looks at four main questions relevant to the discussion of implementation and effectiveness of aid for trade. • How severe are the various possible constraints to trade expansion? • How different are the constraints to imports from the constraints to exports? • What impact would...

This paper examines empirically whether Aid for Trade (AfT) programmes and Foreign Direct Investment (FDI) inflows affect export upgrading and, if so, whether their effects are complementary or substitutable. Export upgrading entails export diversification (including overall export...

This study investigates the relationship between foreign aid and agricultural exports in recipient countries. Using the constructed data from 47 countries in the period of 2001--2018, we first find that foreign aid inflows in the form of official development assistance (ODA) cause an...

Trade can be a powerful engine for economic growth, poverty reduction, and development. However, harnessing the power of trade is often difficult for developing countries, particularly the least developed countries, because of supply-side domestic constraints (lack of trade-related...

Foreign direct investment (FDI) as a driver of growth is important in today´s globalized economy. It is extremely difficult for economies to grow sustainably without economic interactions outside their borders. However, there has been a debate on the impact of FDI inflow on economic expansion....

This paper investigates whether Aid for Trade (AfT) leads to greater exports in recipient countries. Using panel data and panel quantile regression techniques, our results suggest that total AfT disbursements promote the export of goods and services, but is limited primarily to exporters above...

Foreign aid is given for a combination of economic, political, and humanitarian motives. While its impact on economic development in recipient countries has been the main focus of research recently, we concentrate on the question to what extent it also promotes donor countries’ exports. We...