Title_  Aid for Trade and Comparative Advantage Following (CAF) Development Strategy 

Author_ Sena Kimm Gnangnon 

Pages 122-152

Abstract_ This article analyses whether Aid for Trade (AfT) interventions are associated with the adoption of the Comparative Advantage Following (CAF) development strategy or the Comparative Advantage Defying (CAD) development strategy in recipient-countries. An empirical exercise is performed using a panel dataset of 75 countries over the period 1996-2016. The findings show that AfT interventions tend to be associated with the adoption of the CAF strategy, particularly in countries that experience a relatively low level of trade policy liberalization, a high education level, low inflation rates, a low dependence on natural resources, and a relatively low volume of FDI inflows. 

Keywords_ Aid for trade flows, Comparative Advantage Following (CAF) development strategy, Developing countries