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OECD (2006). Creditor Reporting System on Aid Activities. OECD, Paris. New Actors in Health Financing: What Impact for a Darling of Donors? OECD.

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• TITLE: The Effectiveness of Aid for Trade in Sub-Saharan Africa

  AUTHORS: Guy Paulin Dazoue Dongue

  KEYWORDS: Aid for Trade, Trade Balance, Gravity Model, Poisson Pseudo-Maximum Likelihood, Sub-Saharan African Countries

  JOURNAL NAME: Theoretical Economics Letters, Vol.15 No.1, December 30, 2024

  ABSTRACT: The purpose of this paper is to investigate the effectiveness of Aid for Trade in Sub-Saharan African countries. This study examines the nature of the link between Aid for Trade on both exports and imports of Sub-Saharan African countries with OECD countries over the period 2005 to 2017. From the estimation of the two respective gravity models by the Poisson Pseudo-Maximum Likelihood method, it emerges that aid for trade negatively affects the export flows and positively affects the import flows of Sub-Saharan African countries in the trade relationship with OECD countries. Aid for trade is therefore ineffective because it contributes to maintaining a trade deficit for sub-Saharan African countries. It is therefore recommended that development partners focus aid for trade on the recipient countries’ import substitution strategy.