Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins?

This article applies the flexible estimation approach to estimate an augmented gravity trade model to investigate the link between aid for trade (AfT) and export diversification along the intensive and extensive margins in 42 sub-Saharan African (SSA) countries for the period 1995 to 2019. The findi...

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Main Authors: Nathoo, R., Salim, Ruhul, Ancharaz, V., Kabir, M.
Format: Journal Article
Language:English
Published: ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD 2021
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/85215
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author Nathoo, R.
Salim, Ruhul
Ancharaz, V.
Kabir, M.
author_facet Nathoo, R.
Salim, Ruhul
Ancharaz, V.
Kabir, M.
author_sort Nathoo, R.
building Curtin Institutional Repository
collection Online Access
description This article applies the flexible estimation approach to estimate an augmented gravity trade model to investigate the link between aid for trade (AfT) and export diversification along the intensive and extensive margins in 42 sub-Saharan African (SSA) countries for the period 1995 to 2019. The findings suggest that total AfT is conducive to export diversification along both margins. When analysed by the AfT category, the results reveal that AfT for trade facilitation is more effective in the short run in boosting exports at the extensive margin while AfT for productive capacity building has a bigger impact along both export margins in the longer term. AfT for economic infrastructure seems to promote exports only at the intensive margin. A key policy implication for the donor community is that providing new and additional resources to trade facilitation in African countries could deliver the highest immediate returns in terms of aid effectiveness.
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language English
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spelling curtin-20.500.11937-852152023-01-16T03:04:26Z Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins? Nathoo, R. Salim, Ruhul Ancharaz, V. Kabir, M. Social Sciences Economics Business & Economics Aid for trade export diversification intensive margin extensive margin gravity model GRAVITY MODEL PERFORMANCE FLOWS LOG This article applies the flexible estimation approach to estimate an augmented gravity trade model to investigate the link between aid for trade (AfT) and export diversification along the intensive and extensive margins in 42 sub-Saharan African (SSA) countries for the period 1995 to 2019. The findings suggest that total AfT is conducive to export diversification along both margins. When analysed by the AfT category, the results reveal that AfT for trade facilitation is more effective in the short run in boosting exports at the extensive margin while AfT for productive capacity building has a bigger impact along both export margins in the longer term. AfT for economic infrastructure seems to promote exports only at the intensive margin. A key policy implication for the donor community is that providing new and additional resources to trade facilitation in African countries could deliver the highest immediate returns in terms of aid effectiveness. 2021 Journal Article http://hdl.handle.net/20.500.11937/85215 10.1080/00036846.2021.1940084 English ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD fulltext
spellingShingle Social Sciences
Economics
Business & Economics
Aid for trade
export diversification
intensive margin
extensive margin
gravity model
GRAVITY MODEL
PERFORMANCE
FLOWS
LOG
Nathoo, R.
Salim, Ruhul
Ancharaz, V.
Kabir, M.
Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins?
title Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins?
title_full Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins?
title_fullStr Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins?
title_full_unstemmed Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins?
title_short Does aid for trade diversify sub-Saharan Africa’s exports at the intensive and extensive margins?
title_sort does aid for trade diversify sub-saharan africa’s exports at the intensive and extensive margins?
topic Social Sciences
Economics
Business & Economics
Aid for trade
export diversification
intensive margin
extensive margin
gravity model
GRAVITY MODEL
PERFORMANCE
FLOWS
LOG
url http://hdl.handle.net/20.500.11937/85215