Theoretical Economics Letters

Volume 15, Issue 1 (February 2025)

ISSN Print: 2162-2078   ISSN Online: 2162-2086

Google-based Impact Factor: 1.34  Citations  

The Effectiveness of Aid for Trade in Sub-Saharan Africa

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DOI: 10.4236/tel.2025.151001    67 Downloads   410 Views  

ABSTRACT

The purpose of this paper is to investigate the effectiveness of Aid for Trade in Sub-Saharan African countries. This study examines the nature of the link between Aid for Trade on both exports and imports of Sub-Saharan African countries with OECD countries over the period 2005 to 2017. From the estimation of the two respective gravity models by the Poisson Pseudo-Maximum Likelihood method, it emerges that aid for trade negatively affects the export flows and positively affects the import flows of Sub-Saharan African countries in the trade relationship with OECD countries. Aid for trade is therefore ineffective because it contributes to maintaining a trade deficit for sub-Saharan African countries. It is therefore recommended that development partners focus aid for trade on the recipient countries’ import substitution strategy.

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Dongue, G. (2025) The Effectiveness of Aid for Trade in Sub-Saharan Africa. Theoretical Economics Letters, 15, 1-15. doi: 10.4236/tel.2025.151001.

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