International development cooperation increasingly aims to promote trade as a driver of economic growth and sustainable development. Aid for Trade (AfT) supports developing countries in overcoming trade-related constraints through investments in infrastructure, productive capacity and trade policy. Yet, while these interventions can create economic opportunities, their implications for sustainable development are not always straightforward. This DFG-funded project "Aid for Sustainable Trade - : Mechanisms and Trade-offs for Sustainability" examines how development assistance can promote trade while contributing to broader sustainability objectives.
The project investigates the mechanisms through which Aid for Trade affects development outcomes, with particular attention to infrastructure, market access and productive activities. It examines how these mechanisms shape economic opportunities and the distribution of benefits across regions and economic actors. By combining insights from development economics, international trade and political economy with quantitative and geospatial data, the project seeks to better understand when and how trade-related development assistance translates into meaningful development gains.
A central focus is the potential trade-offs between promoting economic activity and achieving sustainability objectives. Rather than assuming that greater trade necessarily leads to better development outcomes, the project investigates how the effects of development assistance vary across contexts and dimensions of sustainability. The findings aim to contribute to a more evidence-based understanding of how development cooperation can support trade while advancing sustainable and inclusive development.
Project outputs will be regularly updated on this page.