Impact of Development Aid on Cross-Border Trade: Case of Waemu

Abstract

The effectiveness of development assistance in the economic growth of developing countries and especially in their trade is complex and often discussed. This article tries to have a look at the cross-border trade situation of WAEMU member states and the impact of development aid on their cross-border trade, which is seen as a driver of the economic growth of countries. The results of the GMM and the individual specific effects estimation on  panel data for the period 2005-2015 showed a low positive impact of aid on the cross-border trade which promotes the economic growth. These results have, however, raised other questions.

Keywords: Cross-border trade, Development aid, WAEMU.


Article Review Status: Published

Pages: 14-23 (Download PDF)

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