Estimating the Constraints to Developing Countries Trade - A Taxonomy of the Binding Constraints to Trade Expansion of Landlocked Countries, Small and Vulnerable Economies, and Commodity Exporters

Hallaert, Jean-Jacques; Cavazos, Ricardo; Kang, Gimin

doi:10.2139/ssrn.1798543

Cited by 2 publications

(8 citation statements)

References 75 publications

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“…This evidence is surveyed in Hallaert et al (2011) andcovers Brazil (Muendler, 2004), Chile (Pavcnik, 2002), India (Topalova and Khandelwal (2010), Indonesia (Amity and Konings, 2007), Mexico (Tybout and Westbrook, 1995), and Korea and Chinese Taipei (Aw et al, 2000).…”

Section: Discussionmentioning

confidence: 99%

“…During the second period "trade policies were complemented by reforms putting a stronger focus on other macroeconomic and social policies including productivity boosting reforms, spending on social programmes, improving the investment climate, and the strengthening of institutions" (Dufrénot et al, 2010, p. 742). Supporting this argument, Hallaert et al (2011) show that structural policies are very important for trade expansion and economic growth, as they affect factors such as investment, labour productivity and participation that have a large impact on trade performance.…”

Section: Structural Policies Are Important For Trade Expansionmentioning

confidence: 93%

“…Highlighting the experience of newlyindustrialised Asian economies since the 1960s, Lin and others (Lin, 2007;UNIDO, 2007) argued that industrial latecomers can take advantage of the newest technological developments by simply buying them at relatively lower cost and with less risk. Hallaert et al (2011) found that even in landlocked, small and vulnerable economies, imports foster economic growth, albeit with impacts varying substantially across different country groupings. (1999) and Hallaert (2006) Recent firm-and plant-level data provide even more robust evidence than cross-country regressions about the positive impact of imports on economic growth.…”

Section: …But Pay Less Attention To Imports…mentioning

confidence: 99%

“…The importance of supportive macroeconomic policies is highlighted in an econometric study by Hallaert et al (2011) which attempts to quantify the severity of various partner-country constraints to trade expansion. The authors show that both fiscal and exchange rate policies have a large and statistically significant impact on partner countries' trade performances.…”

Section: Trade-related Adjustment Can Play An Important Fiscal Role…mentioning

confidence: 99%

“…Especially in the aftermath of the recent financial crisis, partner countries need to implement governance reforms, while the donor community needs to maintain its funding pledges and ensure better management of aid delivery (Kaufmann, 2009). labour market policies crucially affect labour productivity and competitiveness… Hallaert et al (2011) argue that policies aimed at improving labour productivity such as education, training and labour market reforms can also contribute significantly to trade expansion. They conclude that a 10% increase in labour productivity increases a country's export ratio by 3% of GDP.…”

Section: Structural Policies Are Important For Trade Expansionmentioning

confidence: 99%

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Section: Discussionmentioning

confidence: 99%

Section: Structural Policies Are Important For Trade Expansionmentioning

confidence: 93%

Section: …But Pay Less Attention To Imports…mentioning

confidence: 99%

Section: Trade-related Adjustment Can Play An Important Fiscal Role…mentioning

confidence: 99%

Section: Structural Policies Are Important For Trade Expansionmentioning

confidence: 99%

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You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD and WTO as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to rights@oecd.org. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at info@copyright.com or the Centre français d'exploitation du droit de copie (CFC) at contact@cfcopies.com. The publication Aid for Trade at a Glance: Showing Results highlights that the international community has responded effectively to the challenge of helping developing countries, and in particular the least developed ones, overcome structural and capacity limitations that undermine their ability to maximise the benefits of trade opportunities. It provides clear evidence that the Initiative has resulted in the prioritisation of trade in development strategies, has galvanised support to tackle the bottlenecks that undermine the ability of producers to connect to global markets, and has bettered the lives of many men and women in developing countries.Aid for trade is leveraging development assistance to help countries tap into the power of markets, connect to new centers of economic wealth and, in turn, become the new growth poles in the global economy. To unleash such an economic transformation, we must learn from the successes and failures on how to make globalisation more inclusive. We need to know more about the results of our efforts.The large number of case stories from partner countries, bilateral and multilateral donor agencies, providers of South-South co-operation and regional economic communities probe deeper into the policies, processes, and programmes on aid for trade. They help us better understand what is working, what are the key ingredients of success, and what governments and practitioners can learn from these experiences. The case stories provide rich details of how aid-for-trade programmes and projects have made a difference in building human and institutional capacities, supporting the private sector, meeting standards, remedying market failures, facilitating trade and improving infrastructure.We need to continue these efforts to strengthen mutual accountability about the aid spent on building trade capacities. To further enhance aid-for-trade outcomes and impacts we need to work together to develop country-led aid-for-trade results frameworks and platforms. But we also need to broaden our dialogue and include discussions about the right mix of complementary policies, good governance and policy coherence for development -all of which are crucial elements in maximising the contribution of trade in attaining national development objectives.This publication provides new perspectives on these issues and points towar...

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Estimating the Constraints to Developing Countries Trade - A Taxonomy of the Binding Constraints to Trade Expansion of Landlocked Countries, Small and Vulnerable Economies, and Commodity Exporters

Cited by 2 publications

References 75 publications

Panama

Panama

Belize

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