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This Economic Paper presents the first analyses of the use and effectiveness of Aid for Trade (AfT), the initiative to help developing countries boost their involvement in the global economy, for small and vulnerable economies (SVEs). It examines in detail the extent to which SVEs have been able to access AfT funds and to what extent this assistance has helped them to improve their trade performance.Well designed trade-related assistance will help SVEs face the challenges posed by their characteristics, particularly when the prospects for small states have been deteriorating further due to preference erosion and the emergence of new and large competitors.
Massimiliano Cali is Research Fellow, Overseas Development Institute (ODI), London, United Kingdom. Mohammad A Razzaque is Economic Adviser, Economic Affairs Division, Commonwealth Secretariat, London, United Kingdom. Dirk Willem te Velde is Head of Programme, Overseas Development Institute (ODI), London, United Kingdom.
1. Background and motivation2. The rationale behind aid for trade in SVEs 3. How SVEs can access aid for trade3.2 Types of programmes available3.3 Eligibility criteria and implementation4. Patterns of aid for trade4.1 Current and past flows by recipient 4.2 Current and past flows by donor 4.3 AfT to SVEs 5. How aid for trade could help SVEs integrate in the global economy 5.1 A simple model 5.2 How effective have the programmes been? 6. Empirical analysis on the effects of aid for trade on SVEs 6.1 The empirical models 6.2 Data 6.3 Results 7. Conclusions and policy implications ReferencesTables and ChartsAnnex 1 Aid for Trade projects in SVEsAnnex 2 Defining “Trading Across Borders”
"An exceedingly useful publication that will be of great value" Bertrand Ramcharan, Former Acting UN High Commissioner for Human Rights "This publication is an invaluable resource for all those committed to bringing home international human rights standards to the peoples and states of the Commonwealth." Professor Paul Hunt, United Nations Special Rapporteur on the right to the highest attainable standard of health (2002-2008)
Martin Tsamenyi, Mary Ann Palma, Ben Milligan, Kwame Mfodwo, Australia) Tsamenyi, Martin (Director, Centre for Maritime Policy, University of Wollongong, Mary Ann (Australian National Centre for Ocean Resources and Security) Palma, Australia) Milligan, Ben (University of Wollongong, Australia) Mfodwo, Kwame (Monash University
Martin Tsamenyi, Mary Ann Palma, Ben Milligan, Kwame Mfodwo, Australia) Tsamenyi, Martin (Director, Centre for Maritime Policy, University of Wollongong, Mary Ann (Australian National Centre for Ocean Resources and Security) Palma, Australia) Milligan, Ben (University of Wollongong, Australia) Mfodwo, Kwame (Monash University