1. Research interested
Aid for Trade(AfT)
2. Article / Journal
Aid for Trade and Greenfield Investment/ World Development
: Byoungkyun Jeon
2019. 01. 16. (Wed.) - 12:00 ~ 13:30
Seminar room 406, Graduate School of International Agricultural Technology
6. Main contents
○ Understanding of the economic impact of AfT by considering its effects on new international investment in the form of greenfield projects.
○ Compile bilateral data for 25 donor and 120 recipient countries for the period 2003?13 in order to investigate the relationship between aid and international investment.
○ The effects of bilateral AfT on counts and values of bilateral greenfield investment
○ Gravity model with bilateral and time-varying country fixed effects.
○ Poisson Pseudo-Maximum Likelihood (PPML) estimator
○ This study found that 10% increase in annual Big 5 Donor bilateral AfT translates to 25 additional greenfield projects per year in the recipient countries (as a group) worth about $1.7 billion.
○ Robust results emerge when these donors send aid to non-LDC recipients, countries that receive the most AfT.
○ This study see evidence that a critical level of aid is required to encourage greenfield investment.
○ AfT appears to be promoting the development of some recipient countries but perhaps not that of the poorest and neediest.