The aim of this chapter is to place the Aid for Trade (AfT) discussion in the broader context of the current debate on international aid flows. At the same time, we want to highlight the growing importance of the regional level in the whole discussion on aid, as clearly illustrated by the case of AfT where aid flows are explicitly linked to region-to-region trade negotiations, requiring regional donor coordination, on the one hand, and regional absorption capacity, on the other.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Addison, T. and G. Mavrotas (Eds.) (2008). Development Finance in the Global Economy: The Road Ahead. Basingstoke: Palgrave Macmillan for UNU-WIDER.
Addison, T., G. Mavrotas, and M. McGillivray (2005a). Aid, debt relief and new sources of finance for meeting the millennium development goals. Journal of International Affairs, 58(2), 113–127.
Addison, T., G. Mavrotas, and M. McGillivray (2005b). Aid to Africa: an unfinished agenda. Journal of International Development, 17(8), 989–1001.
J.E. Antipin, and G. Mavrotas (2006). On the empirics of aid and growth: a fresh look, UNU-WIDER Research Paper No. 2006/05.
Arce, D.G. and T. Sandler (2002). Regional Public Goods: Typologies, Provision, Financing, and Development Assistance. Stockholm: EGDI – Almkvist & Wiksell International.
Atkinson A.B. (Ed.) (2004).New Sources for Development Finance. Oxford: Oxford University Press for UNU-WIDER.
Baliamoune-Lutz, M. and G. Mavrotas (2008). Aid effectiveness: looking at the aid-social capital-growth nexus. Review of Development Economics, forthcoming.
Beynon, J. (2002). Policy Implications for Aid Allocations of recent research on aid effectiveness and selectivity. In: B. Mak Arvin (Ed.), New Perspectives on Foreign Aid and Economic Development (pp. 199–264). Westport, Connecticut: Praeger.
Beynon, J. (2003), Poverty Efficient Aid Allocations: Collier/Dollar Revisited, Economic and Statistics Analysis Unit Working Paper, Overseas Development Institute, London, (2).
Breslin, S., C.W. Hughes, N. Phillips and B. Rosamond (Eds.) (2002). New Regionalisms in the Global Political Economy: Theories and Cases. Routledge: London.
Bretherton, C. and J. Vogler (1999). The European Union as a Global Actor. Routledge: London and New York.
Bourguignon, F. and M. Sundberg (2007a). Absorptive Capacity and Achieving the Millennium Development Goals. In Mavrotas, G. and A. Shorrocks (Eds.), Advancing Development: Core Themes in Global Economics (pp. 640–663), Basingstoke: Palgrave Macmillan for UNU-WIDER.
Bourguignon, F. and M. Sundberg (2007b). Is foreign aid helping? Aid effectiveness – opening the black box. American Economic Review, (97)2, 316–321.
Bulíř, A. and J. Hamann (2003). Aid Volatility: An Empirical Assessment, IMF Staff Papers No. 5.
Burall, S. and S. Maxwell (2006). Reforming the International Aid Architecture: Options and Way Forward, Overseas Development Institute, ODI Working Paper No. 278, October.
Burnell, P. (2004). Foreign aid resurgent: New spirit or old hangover, Research Paper No.2004/44, World Institute for Development Economics Research, Helsinki.
Burnside, C. and D. Dollar (2000). Aid, Policies and Growth. American Economic Review, 90(4), 847–868.
Cassen, R. (1994). Does Aid Work?. Oxford: Oxford University Press.
Chauvet, L. and P. Guillaumont (2004). Aid effectiveness in an unstable environment, Mimeo, CERDI, France.
Chauvet, L. and P. Guillaumont (2008). Aid, volatility and growth again: when aid volatility matters and when it does not. Review of Development Economics, forthcoming.
Claessens, S., D. Cassimon and B. Van Campenhout (2007). Empirical Evidence on the New International Aid Architecture, IMF Working Paper No. WP/07/277.
Clemens, M., S. Radelet and R. Bhavnani (2004). Counting Chickens when they Hatch: The Short-term Effect of Aid on Growth, Working Paper No. 44, Washington, DC: Center for Global Development.
Collier, P. (2006). What Can We Expect from More Aid to Africa?, Unpublished.
Collier, P. and D. Dollar (2001). Can the world cut poverty in half? How policy reform and effective aid can meet international development goals. World Development, 29(11), 1787–1802.
Collier, P. and D. Dollar (2002). Aid allocation and poverty reduction. European Economic Review, 45(8), 1470–1500.
Collier, P. and D. Dollar (2004). Development effectiveness: what have we learnt? Economic Journal, 114(496), F244–F271.
Cook, L.D. and J. Sachs (1999). Regional Public Goods in International Assistance. In I. Kaul, I. Grunberg and M.A. Stern (Eds), Global Public Goods. International Cooperation in the 21st Century (pp. 436–449), New York: Oxford University Press.
Cuyvers, L., P. De Lombaerde, E. De Souza and D. Fielding (2005). Regional monetary cooperation and integration. In: M. Farrell, B. Hettne and L. Van Langenhove (Eds), Global Politics of Regionalism. Theory and Practice (pp. 120–136), London: Pluto Books.
Dalgaard, C.-J. and H. Hansen (2001). On aid, growth and good policies. Journal of Development Studies, 37(6), 17–41.
Dalgaard, C.-J., H. Hansen and F. Tarp (2004). On the empirics of foreign aid and growth. Economic Journal, 114(496), F191–F216.
Dayton-Johnson, J. and J. Hoddinot (2003). Aid, policies and growth redux, unpublished manuscript.
De Lombaerde, P. (2003). Book review of ‘new regionalism in the global political economy. Journal of Common Market Studies, 41(5), 968–969.
Denkabe, P. (2004). Policy, Aid, and Growth: A Threshold Hypothesis. Journal of African Finance and Economic Development, 6, 1–21.
de Renzio, P. (2005). Can More Aid be Spent in Africa?, ODI Opinions, (30). London: Overseas Development Institute.
Doucouliagos, H. and M. Paldam (2005). The Aid Effectiveness Literature: The Sad Results of 40 Years of Research, Department of Economics Working Paper 2005.05, University of Aarhus.
Easterly, W. (2006). The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good. New York: Penguin Press.
Easterly, W. (2007). Was Development Assistance A Mistake? American Economic Review, 97(2), 328–332.
Easterly, W., R. Levine and D. Roodman (2004). New data, new doubts: a comment on burnside and dollar’s ‘aid, polices and growth (2000). American Economic Review, 94(3), 774–780.
Estevadeordal, A., B. Frantz and T.R. Nguyen (Eds) (2004). Regional Public Goods, Washington: IDB-ADB.
European Commission (2002). Annual Report 2001 from the Commission to the Council and the European Parliament: On the EC Development Policy and the Implementation of the External Assistance, Brussels: Commission of the European Communities.
European Commission (2005). Proposal for a Joint Declaration by the Council, the European Parliament and the Commission on the European Union development Policy, The European Consensus, COM(2005)311Final, Brussels: Commission of the European Communities.
Farrell, M. (2005). The Global Politics of Regionalism – An Introduction. In: M. Farrell, B. Hettne and L. Van Langenhove (Eds.), Global Politics of Regionalism. Theory and Practice (pp. 1–17). London: Pluto Books.
Farrell, M., B. Hettne and L. Van Langenhove (Eds.) (2005), Global Politics of Regionalism. Theory and Practice, London: Pluto Books.
Fawcett, L. and A. Hurrell (Ed.) (1995). Regionalism in World Politics: Regional Organization and International Order. Oxford and New York: Oxford University Press.
Feyzioglu, T., V. Swaroop and M. Zhu (1998). A panel data analysis of the fungibility of aid. World Bank Economic Review, 12(1), 29–58.
Fielding, D. and G. Mavrotas (2005). The Volatility of Aid, WIDER Discussion Paper, World Institute for Development Economics Research, 2005/2006.
Fielding, D. and G. Mavrotas (2008). Aid volatility and donor-recipient characteristics in ‘difficult partnership countries’, Economica, 75(299), 481–494.
Foster, M. (2003). The Case for Increased Aid, Report to the Department for International Development (DFID), London.
Gavin, B. and P. De Lombaerde (2005). Economic Theories of Regional Integration. In Farrell, M., B. Hettne and L. Van Langenhove (Eds.), Global Politics of Regionalism. Theory and Practice (pp. 69–83), London: Pluto Books.
Graham, K. and T. Felício (2006). Regional Security and Global Governance: A Proposal for a Regional-Global Security Mechanism, Egmont Papers, Brussels: Royal Institute for International Relations.
Guillaumont, P. and S. Guillaumont-Jeanneney (2007). Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches, UNU-WIDER Discussion Paper 2007/05, World Institute for Development Economics Research, Heslinki.
Gupta, S., R. Powell and Y. Yang (2005). The Macroeconomic Challenges of Scaling Up Aid to Africa, IMF Working Paper 05/179, International Monetary Fund, Washington, DC.
Hansen, H., and F. Tarp (2000). Aid Effectiveness Disputed. Journal of International Development, 12(3), 375–398.
Hansen, H. and F. Tarp (2001). Aid and Growth Regressions. Journal of Development Economics, 64(2), 547–570.
Heller, P.S. (1975). A Model of Public Fiscal Behaviour in Developing Countries; Aid, Investment and Taxation. American Economic Review, 65(3), 429–445.
Heller, P.S. (2005). Pity the Finance Minister: Issues in Managing a Substantial Scaling Up of Aid Flows, IMF Working Paper 05/180.
Heller, P. and S. Gupta (2002). More Aid – Making It Work for the Poor. World Economics, 3(4), 131–146.
Herbert, R. (2003). Implementing NEPAD: A Critical Assessment. In Africa Report: Assessing the New Partnership, Ottawa, Canada: North-South Institute.
Hettne, B., A. Inotai and O. Sunkel (1999–2001). The New Regionalism Series (Vol. I–V). London: Macmillan Press.
Hettne, B. and F. Söderbaum (2000). Theorising the Rise of Regionness. New Political Economy, 5(4), 457–472.
Hettne, B. and F. Söderbaum (2004). Regional Cooperation. A Tool for Addressing Regional and Global Challenges, International Task Force on Global Public Goods, Göteborg, 9.
Hudson, J. (2004). Introduction: Aid and Development. Economic Journal, 114(496), F185–F190.
Hudson, J. and P. Mosley (2006). Aid Volatility, Policy and Development, Paper presented at the WIDER Development Conference on Aid: Principles, Policies and Performance, WIDER Helsinki, 16–17 June.
Kaul, I. (2003). Re-Defining Public Goods: Why, How, and to What Effect, Paper prepared for the Conference on Regional Public Goods, UNU-CRIS, Bruges, 20–21 November.
Khilji, N., and E. Zampelli (1991). The Fungibility of US Assistance to Developing Countries and the Impacts on Recipient Expenditures: a Case Study of Pakistan. World Development, 19(8), 1095–1106.
Killick, T. and M. Foster (2007). The Macroeconomics of Doubling Aid to Africa and the Centrality of the Supply Side. Development Policy Review, 25(2), 167–192.
Knack, S. and A. Rahman (2004). Donor Fragmentation and Bureaucratic Quality in Aid Recipients, World Bank Policy Research Working Paper 3186.
Lahiri, S. (Ed.) (2007). Theory and Practice of Foreign Aid, Amsterdam/Oxford: Elsevier.
Lahiri, S. and K. Michaelowa (2006). The Political Economy of Aid, Special Issue. Review of Development Economics, 10(2), 177–344.
Lensink, R. and H. White (2001). Are there negative returns to aid?. Journal of Development Studies, 37(6), 42–65.
Levin, V. and D. Dollar (2005). The Forgotten States: Aid Volumes and Volatility in Difficult Partnership Countries, Paper prepared for DAC Learning and Advisory Process on Difficult Partnerships.
Luiz, J. (2005). The New Partnership for African Development: Questions regarding Africa’s response to its underdevelopment. Journal of International Development, forthcoming.
Mavrotas, G. (2002a). Foreign Aid and Fiscal Response: Does Aid Disaggregation Matter? Weltwirtschaftliches Archiv (Review of World Economics), 138(3), 534–559.
Mavrotas, G. (2002b). Aid and Growth in India: Some Evidence from Disaggregated Aid Data. South Asia Economic Journal, 3(1), 19–49.
Mavrotas, G. (2005). Aid Heterogeneity: Looking at Aid Effectiveness from a Different Angle. Journal of International Development, 17(8), 1019–1036.
Mavrotas, G. and P. Nunnenkamp (2007). Foreign Aid Heterogeneity: Issues and Agenda. Review of World Economics, 143(4), 585–595.
Mavrotas, G. and B. Ouattara (2006a). Public Fiscal Behaviour and Aid Heterogeneity in Aid-recipient Economies. Journal of Developing Areas, 39(2), 1–15.
Mavrotas, G. and B. Ouattara (2006b). Aid disaggregation, endogenous aid and the public sector in aid-recipient economies. Review of Development Economics, 10(3), 432–449.
Mavrotas, G. and H. Reisen (2007). The Multilateral Development Finance Non-System, Paper presented at the Experts’ Workshop on Performance and Coherence in Multilateral Development Finance, Berlin, 29–30 January.
Mavrotas, G. and E. Villanger (2006). Multilateral aid agencies and strategic donor behaviour, UNU-WIDER Discussion Paper No. 2006/02.
Maxwell, S. (2002), More Aid? Yes – and Use it to Reshape Aid Architecture, ODI Opinions, London: ODI.
Maxwell, S. (2006). Aid Architecture: A Blueprint for the Future, ODI Annual Report 2006, London: ODI.
McGillivray, M. (2003). Aid effectiveness and selectivity: integrating multiple objectives in aid allocations, Paper presented at the Joint OECD DAC/Development Centre Aid Seminar, Paris: OECD Headquarters.
McGillivray, M., S. Feeny, N. Hermes and R. Lensink (2006). It Works; It Doesn’t; It Can, But That Depends. 50 Years of Controversy over the Macroeconomic Impact of Development Aid. Journal of International Development, 18(7), 1031–1050.
Melchers, K. (2005). New Partnership for African Development: A reform Agenda for Africa – Initial Success and Criticism. Agriculture and Rural Development, 12(2).
Mosley, P. (1987). Overseas Aid: Its Defense and Reform. Brighton: Wheatsheaf Press.
Mugabe, J. (2003). The Keys to Africa’s Sustainable Development: Science, Technology and Investment. In Africa Report: Assessing the New Partnership. Ottawa, Canada: North-South Institute.
Munro, L. (2005). Focus-Pocus? Thinking critically about whether aid organizations should do fewer things in fewer countries. Development and Change, 36(3), 425–447.
NEPAD Secretariat (2005), “The Capital Flows Initiative” Johannesburg: NEPAD.
Nkuhlu, W.L. (2005). The New Partnership for African Development: The Journey So Far, Johannesburg: NEPAD Secretariat.
Obame, J.-C. (2003). Overview of Investment and Financing to Africa: Challenges and Risk Management, Paper presented at the Africa Day Symposium, UNU, Tokyo, 13 May.
Ouattara, B. (2006). Foreign aid, public savings displacement and aid dependency in Cote d"Ivoire. Oxford Development Studies, 35(1), 33–46.
Pack, H., and J.R. Pack (1990). Is Foreign Aid Fungible?: The Case of Indonesia. Economic Journal, 100(399), 188–194.
Pack, H. and J.R. Pack (1993). Foreign Aid and the Question of Fungibility.Review of Economics and Statistics, 75(2), 258–265.
Pallage, S. and M. Robe (2001). Foreign Aid and the Business Cycle. Review of International Economics, 9(4), 636–667.
Radelet, S. (2006). A Primer on Foreign Aid, Working Paper No.92, Center for Global Development, Washington D.C.
Radelet, S. (2008). The Millennium Challenge Account: Transforming US Foreign Assistance Policy? In T. Addison and G. Mavrotas (Eds.), Development Finance in the Global Economy: The Road Ahead. Basingstoke: Palgrave Macmillan for UNU-WIDER.
Ram, R. (2004). Recipient Country’s ’Policies’ and the Effect of Foreign Aid on Economic Growth in Developing Countries: Additional Evidence. Journal of International Development, 16(2), 201–211.
Riddell, R. (2007). Does Foreign Aid Really Work? Oxford: Oxford University Press.
Roodman, D. (2008). Aid Project Proliferation and Absorptive Capacity. In G. Mavrotas and M. McGillivray (Eds.), Development Aid: A Fresh Look. Basingstoke: Palgrave Macmillan for UNU-WIDER (forthcoming).
Sampson, G. and S. Woolcock (2003). Regionalism, Multilateralism, and Economic Integration. The Recent Experience. Tokyo: UNU Press.
Samuelson, P.A. (1954). The Pure Theory of Public Expenditure. Review of Economics and Statistics, 36(4), 387–389.
Stadtmüller, E. (2005). Regional Dimensions of Security. In M. Farrell, B. Hettne and L. Van Langenhove (Eds), Global Politics of Regionalism. Theory and Practice (pp. 104–119). London: Pluto Books.
Strålgren, P. (2000). Regional Public Goods and the Future of International Development Co-operation. A Review of the Literature on Regional Public Goods, EGDI Working Paper, No. 2.
Söderbaum, F. and P. Strülgren (Eds) (2009). The European Union and the Global South. Boulder/London: Lynne Riener Publishers (forthcoming).
Tarp, F. (Ed.) (2000). Foreign Aid and Development: Lessons Learnt and Directions for the Future. London: Routledge Studies in Development Economics.
Thiele, R., Nunnenkamp, P. and Dreher, A. (2007). Do donors target aid in line with the millennium development goals? A sector perspective of aid allocation. Review of World Economics, 143(4), 596–630.
UNCTAD (2001). Third United Nations Conference on the Least Developed Countries (LDCIII) – Infrastructure Development Session, Brussels, 19 May.
UNECA (2002). Annual Report on Integration in Africa 2002, UN Economic Commission for Africa, Addis Ababa.
UNECA (2007). Regional Economic Integration in Africa. In P. De Lombaerde (Ed.), Multilateralism, Regionalism and Bilateralism in Trade and Investment. 2006 World Report on Regional Integration (pp. 127–157), Dordrecht: Springer
Wade, A. (2003). The Role of Infrastructures in Development and Regional Integration, Paper presented at the Africa Day Symposium, UNU, Tokyo, 13 May.
White, H. (1992). The macroeconomic impact of development aid: A critical survey. Journal of Development Studies, 28(2), 163–240.
White, H. (2008). Evaluating Aid Impact. In G. Mavrotas and M. McGillivray (Eds.), Development Aid: A Fresh Look. Basingstoke: Palgrave Macmillan for UNU-WIDER (forthcoming).
World Bank (1998). Assessing Aid: What Works, What Doesn’t and Why. Oxford University Press: Oxford.
World Bank (2000). Can Africa Claim the 21st Century? Washington D.C. http://go.worldbank.org/ Z7KUASD0N0
World Bank (2007). Aid Architecture: An Overview of the Main Trends in Official Development Assistance Flows. Washington: World Bank.
Yuge, A. (2003). Remarks at the Panel Discussion on Financing Infrastructure Projects in Developing Countries and in Africa: Challenges and Implementation, Africa Day Symposium, UNU, Tokyo, 13 May.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2009 Springer Science+Business Media B.V.
About this chapter
Cite this chapter
Lombaerde, P.D., Mavrotas, G. (2009). Aid for Trade, Aid Effectiveness and Regional Absorption Capacity. In: De Lombaerde, P., Puri, L. (eds) Aid for Trade: Global and Regional Perspectives. United Nations University Series on Regionalism, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-9455-2_3
Download citation
DOI: https://doi.org/10.1007/978-1-4020-9455-2_3
Publisher Name: Springer, Dordrecht
Print ISBN: 978-1-4020-9454-5
Online ISBN: 978-1-4020-9455-2
eBook Packages: Business and EconomicsEconomics and Finance (R0)