Does German Development Aid boost German Exports and German Employment? A Sectoral Level Analysis

摘要

This paper uses an augmented gravity model of trade to investigate thelink between German development aid and sectoral exports from Germany to aidrecipient countries with data from 1978–2011. The findings indicate that in thelong run each dollar of German aid is associated with an average increase ofUS$ 0.83 US of German goods exports. The sectors that benefit the most in termsof exports and employment are machinery, electrical equipment and transportequipment. According to our estimates using input-output analysis and a partialequilibrium framework, the aid-induced gains in sectoral exports are associatedwith the gross employment of approximately 216,000 people.