Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/256939 
Year of Publication: 
2019
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 7 [Issue:] 1 [Article No.:] 6 [Publisher:] MDPI [Place:] Basel [Year:] 2019 [Pages:] 1-19
Publisher: 
MDPI, Basel
Abstract: 
This article investigates empirically the effect of aid for trade policies and regulations on the volatility of tariffs in the recipient countries. The analysis has used an unbalanced panel dataset of 107 countries over the period from 2002 to 2015. The empirical results, based on the two-step system Generalized Methods of Moments (GMM) approach, show that aid for trade policies and regulations influences negatively and significantly tariff policy volatility in recipient countries. Additionally, the findings indicate that the better the institutional and governance quality in recipient countries, the higher is the reducing effect of aid for trade policies and regulations on tariff policy volatility. These results, therefore, suggest that a scale up of aid for trade policies and regulations to, inter alia, build the capacity of policymakers in recipient countries to contribute to reducing tariffs volatility in these countries, which would, in turn, likely benefit donor countries. Furthermore, improving domestic institutions and governance in recipient countries would further enhance the reducing impact of this aid on tariff volatility, which, once again, benefits both the recipient countries and donor countries.
Subjects: 
aid for trade policies and regulations
tariff policy volatility
JEL: 
F14
F35
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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