Title

Does Aid-for-Trade enhances exports of the recipient country? A disaggregate analysis Pakistan

Abstract/Description

Although it is recognized that Aid-for-Trade (AfT) is a steadfast source to promote trade and especially exports in developing countries, its usefulness on exports is not completely proven. This work analyzes whether different sub-categories of AfT increase or decreases the Export flows to the AfT-Donor and Non-Donor countries, from Pakistan, using a panel of its top 60 trade partner countries (covers 90% trade flows), by using the random-effect panel Gravity model, over the period 2005 to 2017. The result concludes that overall Aid-for-Trade has negative and significant impact on exports of Pakistan. Only aid received in sectors “Industry, Fishing and Tourism” have significant and positive impacts on the bilateral export of Pakistan. “Transport & storage, Communication, Energy, Trade Policy & Regulations, Business & Other services, Banking & Finance, Agriculture, Forestry, Mineral & Resources and Tourism’ sectors have negative impact on the Bilateral Exports of Pakistan. The total trade flows in term of their Exports are decreased with Aid, side by side, comparatively more to the Non-Donor Countries. So, Aid Donor Countries gets more benefits from Aid-for-Trade program as compared to the Pakistan (the Aid-Recipient Country).

Location

Lecture Room 1, 12th Floor, Aman Tower, City Campus

Session Theme

Firms, Trade and Globalization - Session IA

Session Type

Parallel Technical Session

Session Chair

Dr. Asad Sayeed, Economist and Researcher, Collective for Social Science Research

Session Discussant

Dr. Saqib Sharif, Associate Professor, Institute of Business Administration, Karachi

Start Date

2-4-2021 2:30 PM

End Date

2-4-2021 4:00 PM

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Apr 2nd, 2:30 PM Apr 2nd, 4:00 PM

Does Aid-for-Trade enhances exports of the recipient country? A disaggregate analysis Pakistan

Lecture Room 1, 12th Floor, Aman Tower, City Campus

Although it is recognized that Aid-for-Trade (AfT) is a steadfast source to promote trade and especially exports in developing countries, its usefulness on exports is not completely proven. This work analyzes whether different sub-categories of AfT increase or decreases the Export flows to the AfT-Donor and Non-Donor countries, from Pakistan, using a panel of its top 60 trade partner countries (covers 90% trade flows), by using the random-effect panel Gravity model, over the period 2005 to 2017. The result concludes that overall Aid-for-Trade has negative and significant impact on exports of Pakistan. Only aid received in sectors “Industry, Fishing and Tourism” have significant and positive impacts on the bilateral export of Pakistan. “Transport & storage, Communication, Energy, Trade Policy & Regulations, Business & Other services, Banking & Finance, Agriculture, Forestry, Mineral & Resources and Tourism’ sectors have negative impact on the Bilateral Exports of Pakistan. The total trade flows in term of their Exports are decreased with Aid, side by side, comparatively more to the Non-Donor Countries. So, Aid Donor Countries gets more benefits from Aid-for-Trade program as compared to the Pakistan (the Aid-Recipient Country).