2009:1 The Relation between Aid and Bilateral Trade

Lars M. Johansson, Jan Pettersson
Serier – UTV Working PaperDescription:
Are Nordic Donors Different? / The authors analyse the effects of various foreign development assistance variables on both recipient and donor exports and we specifically study the effects for Sweden, so-called Nordic Plus countries and Likeminded countries. They find a strong relation between aid in the form of technical assistance and exports in both directions, thus supporting our interpretation that market knowledge through interpersonal relations is an important driving force for exports. The Nordic Plus donors show a particularly strong effect of technical assistance on recipient exports.