Aid to the services sector : does it affect manufacturing exports ?, Vol. 1 of 1

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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:	2011/07/01	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Industry and trade
Rel. Proj ID:	1W-Transparency And Regulatory Reform In The Asia Pacific Region -- -- P106110;	Region:	The World Region
Report Number:	WPS5728	Sub Sectors:	Other domestic and international trade
SubTopics:	Transport Economics Policy & Planning; Economic Theory & Research; Emerging Markets; E-Business; Development Economics & Aid Effectiveness	TF No/Name:	TF090173-TC- Global Trade Financial Architecture; TF094728-TRANSPARENCY, TRADE, AND ECONOMIC GROWTH
Volume No:	1 of 1	Related 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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