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Does German Development Aid Promote German Exports?

Title data

Klasen, Stephan ; Larch, Mario ; Martinez-Zarzoso, Inmaculada ; Nowak-Lehmann, Felicitas:
Does German Development Aid Promote German Exports?
In: German Economic Review. Vol. 10 (2009) Issue 3 . - pp. 317-338.
ISSN 1468-0475
DOI: https://doi.org/10.1111/j.1468-0475.2008.00458.x

Abstract in another language

This paper uses a static and dynamic gravity model of trade to investigate the link between German development aid and exports from Germany to the recipient countries. The findings indicate that in the long run,German aid is associated with an increase in exports of goods that is larger than the aid flow, with a point estimate of 140 percent of the aid given. In addition, the evolution of the estimated coefficients over time shows an effect that is consistently positive but which oscillates over time. Interestingly, in the period from 2001 to 2005, a steady increase in the effect of aid on trade can be observed following a decrease in this phenomenon in the second half of the nineties. The paper also distinguishes among recipient countries and finds that the return on aid measured by German exports is higher for aid to countries considered “strategic aid recipients” by the German government.

Further data

Item Type: Article in a journal
Refereed: Yes
Keywords: International Trade; Foreign Aid; Germany
Subject classification: F10; F35
Institutions of the University: Faculties > Faculty of Law, Business and Economics > Department of Economics > Lehrstuhl Volkswirtschaftslehre VI: Empirische Wirtschaftsforschung
Faculties > Faculty of Law, Business and Economics > Department of Economics > Lehrstuhl Volkswirtschaftslehre VI: Empirische Wirtschaftsforschung > Lehrstuhl für Volkswirtschaftslehre VI: Empirische Wirtschaftsforschung - Univ.-Prof. Dr. Mario Larch
Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics
Result of work at the UBT: No
DDC Subjects: 300 Social sciences > 330 Economics
Date Deposited: 15 Oct 2015 08:26
Last Modified: 15 Oct 2015 08:26
URI: https://eref.uni-bayreuth.de/id/eprint/16657