Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid Allocation

This paper contributes to the literature on aid allocation by investigating whether export product upgrading (export product diversification and export quality improvement) in both donors and aid recipient-countries matters for donors' aid allocation. The analysis is conducted in a gravity type...

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Main Author: Sèna Kimm Gnangnon
Format: Article
Language:English
Published: Università Carlo Cattaneo LIUC 2018-12-01
Series:The European Journal of Comparative Economics
Subjects:
Online Access:http://ejce.liuc.it/18242979201802/182429792018150203.pdf
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author Sèna Kimm Gnangnon
author_facet Sèna Kimm Gnangnon
author_sort Sèna Kimm Gnangnon
collection DOAJ
description This paper contributes to the literature on aid allocation by investigating whether export product upgrading (export product diversification and export quality improvement) in both donors and aid recipient-countries matters for donors' aid allocation. The analysis is conducted in a gravity type framework model over a panel dataset comprising 23 donor-countries and 126 recipient-countries over the period 1970-2010. The study uses both within fixed effects and fixed effects quantile regression estimators to perform the analysis. The empirical results suggest evidence that export product diversification in donor-countries does not influence their bilateral aid supply, but an improvement in their overall export quality does generate higher bilateral aid to recipient-countries. In the meantime, while export product diversification in recipient countries does not influence the bilateral aid these countries receive from donors, bilateral aid supplied by donors declines when recipient-countries experience higher overall export quality improvement. Finally, the impact of export upgrading in recipient-countries on the bilateral aid received from donors is dependent upon recipient-countries' level of economic development, proxied by their real per capita income.
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spelling doaj.art-9898aca928624af4b3e696c575e5036d2022-12-22T02:25:20ZengUniversità Carlo Cattaneo LIUCThe European Journal of Comparative Economics1824-29792018-12-0115224927610.25428/1824-2979/201802-249-276Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid AllocationSèna Kimm GnangnonThis paper contributes to the literature on aid allocation by investigating whether export product upgrading (export product diversification and export quality improvement) in both donors and aid recipient-countries matters for donors' aid allocation. The analysis is conducted in a gravity type framework model over a panel dataset comprising 23 donor-countries and 126 recipient-countries over the period 1970-2010. The study uses both within fixed effects and fixed effects quantile regression estimators to perform the analysis. The empirical results suggest evidence that export product diversification in donor-countries does not influence their bilateral aid supply, but an improvement in their overall export quality does generate higher bilateral aid to recipient-countries. In the meantime, while export product diversification in recipient countries does not influence the bilateral aid these countries receive from donors, bilateral aid supplied by donors declines when recipient-countries experience higher overall export quality improvement. Finally, the impact of export upgrading in recipient-countries on the bilateral aid received from donors is dependent upon recipient-countries' level of economic development, proxied by their real per capita income.http://ejce.liuc.it/18242979201802/182429792018150203.pdfbilateral aidexport product diversificationexport quality improvement
spellingShingle Sèna Kimm Gnangnon
Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid Allocation
The European Journal of Comparative Economics
bilateral aid
export product diversification
export quality improvement
title Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid Allocation
title_full Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid Allocation
title_fullStr Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid Allocation
title_full_unstemmed Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid Allocation
title_short Export Upgrading in Donor and Recipient Countries and Bilateral Development Aid Allocation
title_sort export upgrading in donor and recipient countries and bilateral development aid allocation
topic bilateral aid
export product diversification
export quality improvement
url http://ejce.liuc.it/18242979201802/182429792018150203.pdf
work_keys_str_mv AT senakimmgnangnon exportupgradingindonorandrecipientcountriesandbilateraldevelopmentaidallocation