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Aid to the services sector : does it affect manufacturing exports ?
Author:Ferro, Esteban; Portugal-Perez, Alberto; Wilson, John S.; Collection Title:Policy Research working paper ; no. WPS 5728
Country:World; Date Stored:2011/07/19
Document Date:2011/07/01Document Type:Policy Research Working Paper
SubTopics:Transport Economics Policy & Planning; Economic Theory & Research; Emerging Markets; E-Business; Development Economics & Aid EffectivenessLanguage:English
Major Sector:Industry and tradeRel. Proj ID:1W-Transparency And Regulatory Reform In The Asia Pacific Region -- -- P106110;
Region:The World RegionReport Number:WPS5728
Sub Sectors:Other domestic and international tradeTF No/Name:TF090173-TC- Global Trade Financial Architecture; TF094728-TRANSPARENCY, TRADE, AND ECONOMIC GROWTH
Volume No:1 of 1Related Dataset:The Impact of Aid to Services on Manufacturing Exports;

Summary: This paper evaluates the impact of foreign aid to five service sectors (transportation, information and communications technologies, energy, banking/financial services, and business services) on exports of downstream manufacturing sectors in developing countries. To address the reverse causality between aid and exports, the analysis relies on an original identification strategy that exploits (i) the variation of aid flows to service sectors, and (ii) the variation of service-intensities across industrial sectors and countries using input-output data. The authors find a positive effect of aid to services, in general, on downstream manufacturing exports of developing countries across regions and income-level groups.

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