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This paper considers the extent to which the 'Aid for Trade' (AfT) initiative has been effective in promoting improved export outcomes at the firm level. Specifically, the paper uses geo-referenced data on AfT projects from the AidData database and firm activity from a survey of nearly 150 exporting firms in Nepal to spatially identify impacts of the projects on export performance. We find qualified evidence that proximity to (more) AfT projects improves export performance but that some projects may be more effective than others. These findings are supplemented by interviews with 21 exporting firms. The results suggest that the research approach could be utilized more broadly to draw more generalized conclusions about AfT and firm export performance. [ABSTRACT FROM AUTHOR]

Recent literature has come to little consensus on the impact of aid flows on governance in recipient countries. This article adds to the debate by developing a theoretical and empirical argument to help resolve the contradictory claims. The article suggests that the aid-governance relationship need not be linear, but rather, that aid may simultaneously improve and hinder governance. This relationship might be akin to an aid-governance 'aid dependence' Laffer curve wherein 'too much' aid can lead to counter-productive results. Inserting non-linear aid terms in established techniques for examining aid and governance reveals significant support for the potential of negative returns in aid and governance. [ABSTRACT FROM AUTHOR]