Zusammenfassung:
This article investigates empirically the interaction between countries' Comparative Advantage Following (CAF) development strategy and Aid for Trade (AfT ) interventions in influencing the extent of structural change in production. Based on the Generalized Methods of Moments and an unbalanced panel dataset containing 81 countries over the period 1996-2016, the empirical exercise has shown that AfT flows are complementary with the CAF development strategy in generating a higher extent of structural change in production. Thus, higher amounts of AfT flows help promote structural change in production in countries that have adopted the CAF development strategy.