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Evaluating aid for trade : a survey of recent studies, Volume 1
Author:Cadot, Olivier; Fernandes, Ana; Gourdon, Julien; Mattoo, Aaditya; de Melo, Jaime; Country:World;
Date Stored:2014/01/08Document Date:2014/01/01
Document Type:Policy Research Working PaperSubTopics:Common Carriers Industry; Transport Economics Policy & Planning; Economic Theory & Research; Free Trade; Transport and Trade Logistics
Language:EnglishMajor Sector:Industry and trade
Rel. Proj ID:1W-Research On Impact Evaluation For Trade Interventions -- -- P122327;Region:The World Region
Report Number:WPS6742Sub Sectors:Other domestic and international trade
Collection Title:Impact Evaluation series ; no. IE 111Policy Research working paper ; no. WPS 6742TF No/Name:TF097261-Research on IE for Trade Interventions; TF015051-Impact evaluation of trade interventions; TF012409-Dissemination of work on Impact Evaluation in International Integration
Volume No:1  

Summary: The demand for accountability in aid-for-trade is increasing but monitoring has focused on case studies and impressionistic narratives. The paper reviews recent evidence from a wide range of studies, recognizing that a multiplicity of approaches is needed to learn what works and what does not. The review concludes that there is some support for the emphasis on reducing trade costs through investments in hard infrastructure (like ports and roads) and soft infrastructure (like customs). But failure to implement complementary reform -- especially the introduction of competition in transport services -- may erode the benefits of these investments. Direct support to exporters does seem to lead to diversification across products and destinations, but it is not yet clear that these benefits are durable. In general, it is difficult to rely on cross-country studies to direct aid-for-trade. More rigorous impact evaluation is an underutilized alternative, but situations of clinical interventions in trade are rare and adverse incentives (because of agency problems) and costs (because of the small size of project) are a hurdle in implementation.

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