HUANG Meibo, ZHU Dandan:Effect of Foreign Assistance on Export Diversification ——Empirical Research Based on Panel Data of 66 Recipients

Abstract：Using panel data of 66 recipients from 2002 to 2011, this paper studies the relationship between aid and recipients' export diversification.Research shows that, “aid for trade” overall and aid for production sector can enhance recipients' export diversification, while aid for economic infrastructure does not exert significant effect on recipients' export diversification; aid for production sector presents an inverted U-shaped “threshold effect” on export diversification, but “aid for trade” and aid for economic infrastructure do not have this effect; recipients' income and their export diversification have an significant inverted U-shaped “threshold effect”.The above results suggest that when providing foreign aid, donors should pay attention to different effects of different categories of aid on recipients with different development levels to give full play of aid to improve recipients' trade.

Key words： Aid    Export Diversification    Recipient    Threshold Effect

source:Finance & Trade Economics ,No.2,2015