‘When is trade more valuable than aid?’: Revisited

This paper argues that, in the comparison of ‘aid vs trade’ options for developing countries, the estimation of the total impact of aid or trade (‘the indirect effects’) is more important than the evaluation of the direct effects of aid or trade. This argument arises from a critical examination of the prevailing approach to the evaluation of the worth of ‘aid or trade’. Particular references is made to the experience of the Sudan.