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  • Author: Jose Brambila-Macias, Isabella Massa, Matthew J. Salois
  • Publication Date: 11-2011
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: In this paper, we use a mixed-effects trade gravity model on a sample of 83 developing countries over the period 1990-2007 to assess the impact of trade finance and foreign aid on bilateral export flows. In addition to traditional variables, we also include a banking crises variable and a global economic downturns variable among the regressors. Differences across developing regions are taken into account. Our results suggest that: (i) trade finance has a positive and significant impact on bilateral export flows in all developing regions except Latin America; (ii) foreign aid matters in all regions; (iii) global economic downturns exert a negative and significant impact on export flows in all developing countries, and especially in Latin American and Sub-Saharan African economies; (iv) banking crises appear to have no significant impact in most developing regions.
  • Topic: Economics, Globalization, International Trade and Finance, Foreign Aid, Financial Crisis
  • Political Geography: Africa, Latin America
  • Author: Neil Webster
  • Publication Date: 11-2009
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: There are two fundamentally different understandings of how to bring about development. One argues that through the right policies it is possible to create an enabling environment for the development of people and societies. The other emphasises that development can only take place if those who are supposed to benefit from it, insist on it themselves. In the second understanding development cannot be created from above or from outside. So-called cash transfer programmes having spread from Latin America to Africa and Asia are based on this understanding as they transfer money to poor people on certain conditions. The question is to what extent these programmes contribute to development.
  • Topic: Development, Poverty, Foreign Aid
  • Political Geography: Africa, Asia, Latin America