Aid to the Services Sector : Does It Affect Manufacturing Exports?
This paper evaluates the impact of foreign aid to five service sectors (transportation, information and communications technologies, energy, banking/financial services, and business services) on exports of downstream manufacturing sectors in develo...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110719152138 http://hdl.handle.net/10986/3492 |
| Summary: | This paper evaluates the impact of
foreign aid to five service sectors (transportation,
information and communications technologies, energy,
banking/financial services, and business services) on
exports of downstream manufacturing sectors in developing
countries. To address the reverse causality between aid and
exports, the analysis relies on an original identification
strategy that exploits (i) the variation of aid flows to
service sectors, and (ii) the variation of
service-intensities across industrial sectors and countries
using input-output data. The authors find a positive effect
of aid to services, in general, on downstream manufacturing
exports of developing countries across regions and
income-level groups. |
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