Table 6 Definitions and sources of variables

TCI

This is the Technology Choice Index, which is a proxy for the development strategy (i.e., CAF or CAD) adopted by a given country

Author’s calculation based on the formula described in Sect. 3. Data on the added value of manufacturing industries (\({\text{AVM}}_{it}\)) as well as data on the labour in the manufacturing industry (\({\text{LM}}_{it}\)) are collected from the database of the United Nations Industrial Development Organization (https://www.unido.org/researchers/statistical-databases). Data on total added value (GDP) and total labour force (\({\text{L}}_{it}\)) is obtained from the World Development Indicators (WDI) of the World Bank

AfTTOTCST, AfTINFRACST, AfTPRODCST, and AfTPOLCST

“AfTTOTCST” is the total AfT gross disbursements (in constant 2016 US dollars)

“AfTINFRACST” is the gross disbursements AfT allocated to Economic Infrastructure (in constant 2016 US dollars)

“AfTIPRODCST” is the gross disbursements AfT allocated to Productive Capacity Building (in constant 2016 US dollars)

“AfTPOLCST” is the gross disbursements AfT related to Trade Policies and Regulations (in constant 2016 US dollars)

Author’s calculation based on sectoral development aid data collected from the OECD/DAC-CRS (Organization for Economic Cooperation and Development/Donor Assistance Committee)-Credit Reporting System (CRS). AfT data is computed on the basis the following three categories (the CRS Codes are in brackets):

Economic Infrastructure: transport and storage (210), communications (220), and energy

generation and supply (230); Building Productive Capacity: banking and financial services (240), business and other services (250), agriculture (311), forestry (312), fishing (313), industry (321), mineral resources and mining (322), and tourism (332); and Trade policy and regulations: trade policy and regulations and trade-related adjustment (331)

GDPC

GDP per capita (constant 2010 US$)

WDI 2018

TP

This variable represents the measure of trade policy. The trade policy index is indeed the “Freedom to international trade” score used as a major component of the Economic Freedom Index. It is composite measure of the absence of tariff and non-tariff barriers that affect imports and exports of goods and services. Its computation is based on two components: trade-weighted average tariff rage and non-tariff barriers (NTBs), the extent of latter having been determined on the basis of quantitative and qualitative available information. NTBs include quantity restrictions, price restrictions, regulatory restrictions, investment restrictions, customs restrictions, and direct government interventions. This score is graded on a scale of 0 to 100, with a rise indicating lower trade barriers, i.e., higher trade liberalization, while a decrease reflects rising trade protectionism

Heritage Foundation (see Miller et al. 2017)

EDU

Average of the gross rate of primary, secondary and tertiary school enrollment (%)

Author’s calculation based on data from the WDI

FINDEV

This is the measure of the depth of financial development. It is measured by the domestic credit to private sector (% of GDP), where missing values have been replacing with the domestic credit to private sector by banks (% of GDP)

WDI

SHARABLE

This is the share (%) of arable land in total land area

WDI

POP

Total population

WDI

INST

This variable represents the quality of institutions and governance in a given AfT recipient-country. It has been calculated by extracting the first principal component (based on factor analysis) of the following six indicators of governance. These indicators include a measure of political stability and absence of violence/terrorism; a measure of regulatory quality policy; an indicator of Rule of Law; a measure of Government Effectiveness; an indicator of voice and accountability; and finally, a measure of corruption. It is worth noting that higher values of the index “INST” are associated with better governance and institutional quality, while lower values reflect worse governance and institutional quality

Data on the components of “INST” has been extracted from World Bank Governance Indicators developed by Kaufmann, Kraay and Mastruzzi (2010) and updated in 2018