TILF and Ecotech have been pursued in an unbalanced way during the APEC's development. While developed economies emphasize the role of the private sector in promoting Ecotech, developing economies argue that governments should also play at least a complementary role in order to maintain the momentum of the APEC trade and investment liberalization process (TILF) that has accelerated recently. Redirection of developed economies' ODA policies in favor of APEC could alleviate financial limitations of Ecotech, promoting many concrete and practical programs and balancing Ecotech with TILF. In this context, we have discussed the possibility of the existence of a positive link between international trade and aid. Also, a recipient economy's tariff can be reduced by more aid. Empirically, we found that donors with high export/GNP ratios provide less ODA to recipients with smaller export shares. While all donors provide more ODAs to recipients with lower per capita income, except the U.S., Japanese ODA policy is directed toward APEC and France and German are against it. The U.S and U.K have no particular favor or disfavor on the APEC.

Therefore, as further liberalization of TILF programs will bring about higher trade interdependence, more aid from APEC developed economies could not only improve its own welfare but also promote APEC liberalization process. An obvious implication is that strengthening of Ecotech through more ODA toward the APEC and acceleration of TILF are mutually re-enforcing.

Ⅰ. Introduction

Ⅱ. APEC's Ecotech
1. The current Status of APEC's Ecotech
2. ODA and APEC

Ⅲ. A theoretical and empirical background for tying Ecotech to TILF
1. The link between aid and trade: a discussion
2. The link between aid and trade: an empirical observation

Ⅳ. Summary and conclusions

References