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Although the concept of aid for trade has quickly gained prominence among aid donors as well as aid recipients, relatively little is known about its impact on trade-related performance. This paper uses statistical evidence to examine the effects of aid for trade on the costs of trading and on the level of and changes in exports. Using data on a large subset of developing countries over time, we find that aid for trade facilitation reduces the costs of trading. We also use a novel identificationdoi:10.2139/ssrn.1430492 fatcat:gpyzpczun5fwrjhas7pk5cqawe