Department of Economics and Business Economics

Preferential Market Access, Foreign Aid and Economic Development

Research output: Working paperResearch


  • wp15_04

    Submitted manuscript, 821 KB, PDF document

  • Sylvanus Kwaku Afesorgbor, Denmark
  • Kaleb Girma Abreha, Denmark
Several studies highlight that exporters in developing countries face substantial trade costs. To reduce these costs, a few developed countries mainly Canada, the EU, Japan and the USA granted preferential market access to these exporters. We assess whether these preferential accesses have contributed to the economic development of the beneficiary countries. Focusing on the ACP countries over the period 1970-2009, we show that only the EU preferential scheme is effective in promoting exports and that market access plays a significant and economically large role in the development of beneficiary countries. This effect is more pronounced for high-aid receiving countries.
Original languageEnglish
Place of publicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages32
Publication statusPublished - 27 Jan 2015
SeriesEconomics Working Papers

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