Evidencing Donor Heterogeneity in Aid for Trade

This paper is the culmination of a multi-country, multi-method investigation into the export effects of Aid for Trade (AfT). Building on previous single-donor statistical studies of AfT, this paper conducts a statistical study of 19 Organisation for Economic Co-operation and Development (OECD) AfT donors and then examines the delivery and implementation of AfT in four recipient countries - Indonesia, the Philippines, Timor-Leste and Vietnam - from four donor countries - Germany, Japan, Norway and the US. The paper finds considerable variation in the export effects of the AfT programs, ranging from programs with no impact on recipient country exports to programs that are positively correlated with recipient country exports to the donor country and/or the rest of the world. Taking a closer look at the AfT programs of Germany, Japan, Norway and the US suggests that differences in program design and implementation may account for differences in AfT export effects.AM