Swiss News

This paper investigates the impact of aid for trade (AfT) targeted at trade policies on the participation of recipient countries in global value chains (GVCs), and how this impact varies with their prevailing political regimes. In democratic countries, the need for the authorities to account for the interests of various stakeholders (e.g., lobbies, trade unions) can compromise the allocation, use, and effectiveness of AfT. In contrast, less democratic regimes are typically more insulated from political pressures, which may lead to more effective outcomes of aid. At the same time, integration into some complex GVCs requires efficient and democratic institutions, to which these products are sensitive. Employing a sample of 110 countries and data covering 2002-2018, we control for standard determinants of GVC participation, while examining the effect of AfT and the moderating role of the political regime in place. Our estimation addresses the endogeneity of aid through an appropriate instrumentation strategy. Our results suggest that the effect of AfT is mostly positive in autocratic regimes, indicating more effective trade policy reforms. When we account for regional disparities, we find evidence that AfT for trade policy is also impactful in some democratic regimes. This might suggest that the efficacy of AfT is not strictly regime-dependent, but hinges on the government’s commitment to carry out significant reforms leading to greater participation in the global economy.

This paper investigates the impact of aid for trade (AfT) targeted at trade policies on the participation of recipient countries in global value chains (GVCs), and how this impact varies with their prevailing political regimes. In democratic countries, the need for the authorities to account for the interests of various stakeholders (e.g., lobbies, trade unions) can compromise the allocation, use, and effectiveness of AfT. In contrast, less democratic regimes are typically more insulated from political pressures, which may lead to more effective outcomes of aid. At the same time, integration into some complex GVCs requires efficient and democratic institutions, to which these products are sensitive. Employing a sample of 110 countries and data covering 2002-2018, we control for standard determinants of GVC participation, while examining the effect of AfT and the moderating role of the political regime in place. Our estimation addresses the endogeneity of aid through an appropriate instrumentation strategy. Our results suggest that the effect of AfT is mostly positive in autocratic regimes, indicating more effective trade policy reforms. When we account for regional disparities, we find evidence that AfT for trade policy is also impactful in some democratic regimes. This might suggest that the efficacy of AfT is not strictly regime-dependent, but hinges on the government’s commitment to carry out significant reforms leading to greater participation in the global economy.

This paper investigates the impact of aid for trade (AfT) targeted at trade policies on the participation of recipient countries in global value chains (GVCs), and how this impact varies with their prevailing political regimes. In democratic countries, the need for the authorities to account for the interests of various stakeholders (e.g., lobbies, trade unions) can compromise the allocation, use, and effectiveness of AfT. In contrast, less democratic regimes are typically more insulated from political pressures, which may lead to more effective outcomes of aid. At the same time, integration into some complex GVCs requires efficient and democratic institutions, to which these products are sensitive. Employing a sample of 110 countries and data covering 2002-2018, we control for standard determinants of GVC participation, while examining the effect of AfT and the moderating role of the political regime in place. Our estimation addresses the endogeneity of aid through an appropriate instrumentation strategy. Our results suggest that the effect of AfT is mostly positive in autocratic regimes, indicating more effective trade policy reforms. When we account for regional disparities, we find evidence that AfT for trade policy is also impactful in some democratic regimes. This might suggest that the efficacy of AfT is not strictly regime-dependent, but hinges on the government’s commitment to carry out significant reforms leading to greater participation in the global economy.

On 23 September 2026, European Council President, António Costa, delivered a speech at the United Nations Security Council meeting on maintenance of peace and security of Ukraine, in the margins of the United Nations General Assembly High Level Week.

On 23 September 2026, European Council President, António Costa, delivered a speech at the High Level meeting to commemorate the 40th anniversary of the Declaration on the Right to Development, in the margins of the United Nations General Assembly High Level Week.

Main agenda items, approximate timing, public sessions and press opportunities.

On 23 September 2026, European Council President, António Costa, delivered a speech at the “Building an Economy for the Many” High level breakfast hosted by New York City Mayor, Zohran Mamdani.

Press briefing ahead of the upcoming Agriculture and Fisheries Council will take place on Friday, 25 September 2026 at 12.30.

Press briefing ahead of the upcoming Foreign Affairs Council (Defence) will take place on 25 September 2026 at 09.50.

The Council of the European Union set its position ahead of negotiations with the Parliament on amending and reinforcing the market stability reserve.

On 22 September 2026, European Council President, António Costa, delivered a speech at the High level international meeting on the Two-State solution and the Comprehensive Peace Plan for Gaza, “The Road Ahead: One Year After the New York Declaration and the Comprehensive 20-point Peace Plan”, summit co-hosted by France, the United Kingdom and Canada, in the margins of the United Nations General Assembly High Level Week.

The Council prolonged the restrictive measures targeting those responsible for undermining or threatening the territorial integrity, sovereignty and independence of Ukraine for another 36 months, until 22 September 2029.

The Council adopted a decision to amend the first assistance measure by increasing financial allocations to €20 million under the EPF to further strengthen the defence capacities of the Djibouti Armed Forces.

Ein ehemaliger Schweizer Kampfjet vom Typ Hawker Hunter stürzte am Dienstagabend vor der Küste Kaliforniens in den Pazifik. Der Pilot rettete sich per Schleudersitz und wurde von der US Navy geborgen.

Xi Jinping ist in den USA eingetroffen. US-Präsident Donald Trump empfing ihn mit einer seltenen Geste direkt am Flugzeug. Doch ein Streit mit den US-Medien verhinderte TV-Bilder des Moments.

In der Berichterstattung über das Schweizer Eishockey fehlt ihr die emotionale Perspektive der Fans. Das möchte HCD-Fan Lynn als Blick-Fanreporterin mit ihren Beiträgen nun ändern.

Guénaël Mettraux könnte am Internationalen Strafgerichtshof Geschichte schreiben. Wird er im Dezember gewählt, könnte er möglicherweise über Kriegsverbrechen wie die von Wladimir Putin urteilen.

Das 22. Zurich Film Festival startet diesen Donnerstag. Hollywood-Stars laufen über den grünen Teppich und Blick verrät, wann und wo du sie live erleben kannst.

Nach schwerem Unfall und monatelanger Genesung hat Michelle Gisin am 20. Juni 2026 am Gardasee geheiratet. Die 32-jährige Olympiasiegerin spricht erstmals über ihren perfekten Tag mit Luca de Aliprandini.

In Tschechien ist er einer der höchsten Beamten des Landes – in der Schweiz ein Temposünder. Der Regierungsbeamte Filip Minar (43) ging der Kantonspolizei St. Gallen ins Netz. Gegenüber Blick gibt sich der Staatsangestellte geläutert und bereut seine Fahrt.