A recent study conducted by the University of Göttingen for KfW highlights the economic benefits of Germany's development cooperation expenditure. The research examines how these expenditures impact German goods exports to recipient countries.
The findings indicate that for every euro spent on development cooperation, German goods exports increase by EUR 0.36. This boost is attributed to income effects in recipient countries, which enhance local demand and imports, as well as network effects stemming from increased familiarity with 'Made in Germany' products.
From 2013 to 2023, German development cooperation reportedly boosted exports from German companies by USD 8.8 billion (EUR 7.9 billion) annually on average. The study notes that service exports have also risen significantly, although specific data remains unavailable.
The study estimates that around 89,000 jobs in manufacturing and an additional 50,000 jobs in the service sector are linked to these export increases, totaling approximately 139,000 jobs secured through development cooperation.
Christiane Laibach, a Member of the Executive Board of KfW, commented on the findings: "German development cooperation combats global crises and improves living conditions in the partner countries – and has verifiable positive effects for the German export industry. This is a positive side effect of development cooperation. The instruments strengthen international links even in times of crisis. With emerging economies in particular, a close partnership and a local presence are extremely important for Germany as an economic centre. Investments in sustainable infrastructure and climate action improve the market opportunities of German companies in the partner countries."