EFFECTS OF AIDS FOR TRADE ON THE INTERNATIONAL TRADE PERFORMANCE OF THE WESTERN AFRICAN ECONOMIC AND MONETARY UNION

Abstract

The objective of this paper is to analysis the effectiveness of aid for trade in term of export performance for some recipient countries members of the West African Economic and Monetary Union. Using annual data from the Organization for Economic Co-operation and Development/Credit Reporting System, the World Development Indicators database, foreign trade statistics of WAEMU and www.heritage.org we conduct panel data estimation for 8 member countries for the period 2005-2014. We divide aid for trade in two categories (aid for trade capacity and aid for economic infrastructure). We find that aid for trade has an overall positive and significant impact on exports value. This effect seems to be entirely driven by aid to productive capacity, while the other main category of aid for trade, aid to economic infrastructure, has no discernible effect on exports. The sectors that receive the less aid to productive capacity are those which provide the biggest part in recipient’s exportation.