Does the impact of foriegn aid depend on the donor?

SPIRe’s Dr. Samuel Brazys provides evidence in a forthcoming paper in the Review of International Political Economy that the impact of so-called “Aid for Trade” programs in the developing world depends on which donor country is providing the assistance.  Testing across 19 of the OECD donor countries Dr. Brazys finds varying levels of impact of Aid for Trade on recipient country exports.  Programs from France, Japan, Norway,  the UK, the United States and others are associated with a positive impact on recipient country exports while programs from Australia, Canada, Germany, Italy and others show no positive impact on  recipient country exports.  Dr. Brazys then provides a more in-depth study of the Aid for Trade Programs of the United States, Japan, Norway and Germany in Indonesia, the Philippines, Timor-Leste, and Vietnam in order to further understand why some donor programs appear to “work” better than others.

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