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Title: Export upgrading indDonor and recipient countries and bilateral development aid allocation
Authors: Gnangnon, Sèna Kimm
Issue Date: 2018
Publisher: European Association for Comparative Economic Studies (EACES)
Università Carlo Cattaneo - LIUC
Bibliographic citation: Gnangnon Sèna Kimm (2018), Export upgrading indDonor and recipient countries and bilateral development aid allocation. In: The European journal of comparative economics, vol. 15, n. 2, 2018, p. 249-276. E-ISSN 1824-2979. DOI 10.25428/1824-2979/201802-249-276.
Abstract: 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.
Journal/Book: The European journal of comparative economics
Appears in Collections:EJCE

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