A Global Perspective on Effectiveness of Aid for Trade

Recent global initiatives on debt relief
and development assistance call for increasing aid for trade
to the poorest countries. The paper applies a multi-country
computable general equilibrium model to measure the
effectiveness of alternative aid for trade categories. The
findings show that aid for trade policies expand trade and
alleviate international income inequalities in the recipient
countries, that will benefit mainly from aid for trade
adjustment and technical assistance.