Aid for trade policy effectiveness and the middle income

Acheampong Timothy Yaw: Aid for trade policy effectiveness and the middle income.

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The COVID-19 pandemic has made it necessary for all countries and donors to re-evaluate the effectiveness of development policies as countries across the globe seek to reverse the negative growth rates and set their economies back on the path of recovery following the worldwide recession caused by the pandemic. The Aid for Trade (AfT) policy commenced in 2006 with the objective to promote economic growth in developing countries through export expansion. AfT has 3 main components, namely, Aid for Policies and Trade Adjustments, Aid for Trade Infrastructure, and Aid for Building Productive Capacity. Considering that economic growth is a prerequisite for escaping the Middle-Income Trap (MIT), this study seeks to investigate the potential role of AfT in helping countries escape the MIT by answering the following question: How has each of the 3 components of AfT impacted economic growth in middle-income countries? To answer this question, data for 73 middle-income AfT beneficiary countries over the period 2008-2018 were analysed using hierarchical multiple regression, dynamic panel regression, and quantile regression models. The findings suggest that AfT can contribute to growth but it cannot be relied upon as the main engine of growth and vehicle for escaping the MIT.

Item Type: Conference or Workshop Item
Heading title: Economic development and economic policy responses
Journal or Publication Title: Proceedings of the European Union’s Contention in the Reshaping Global Economy
Date: 2022
ISBN: 978-963-306-852-6
Page Range: pp. 105-128
Language: English
Place of Publication: Szeged
Event Title: The European Union’s contention in the reshaping global economy (2022) (Szeged)
Related URLs:
DOI: 10.14232/eucrge.2022.7
Uncontrolled Keywords: Gazdasági növekedés, Kereskedelmi politika, Világjárvány hatása
Additional Information: Bibliogr.: p. 120-122. ; ill. ; összefoglalás angol nyelven
Subjects: 05. Social sciences
05. Social sciences > 05.02. Economics and business
Date Deposited: 2022. Mar. 29. 13:22
Last Modified: 2022. Nov. 08. 13:09

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