Increasing the Impact of Trade Expansion on Growth: Lessons from Trade Reforms for the Design of Aid for Trade

Hallaert, Jean-Jacques

doi:10.2139/ssrn.1635733

Cited by 19 publications

(30 citation statements)

References 72 publications

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“…Building on the conclusions of the reports -Binding Constraints to Trade Expansion: Aid for Trade Objectives and Diagnostics Tools‖ (Hallaert and Munro, 2009) and -Increasing the Impact of Trade Expansion on Growth: Lessons from Trade Reforms for the Design of Aid for Trade‖ (Hallaert 2010), this report tries to identify and quantify the severity of binding constraints to trade expansion in partner countries as well as the importance the complementary policies that are paramount in maximizing the impact of trade reforms on trade and economic growth. As developing countries trade-related needs are numerous, such quantification is needed to identify the most binding constraints and thus guide the sequencing of reforms and aid-for-trade interventions.…”

Section: Executive Summarymentioning

confidence: 99%

“…The methodology used allows us to answer a few questions on the binding constraints that were highlighted in the first two papers (Hallaert and Munro, 2009;Hallaert, 2010), and which are important for the effectiveness of Aid for Trade.…”

Section: Estimating the Constraints To Trade Of Developing Countries -12mentioning

confidence: 99%

“…However, not all observations for all variables are available for all countries and for the complete period. 14 The list of relevant variables was established taking into consideration the lessons from the two preceding papers on binding constraints, namely: (i) the list of potential binding constraints highlighted by the empirical literature as described in Hallaert and Munro (2009) and summarized in Figure 1 and (ii) the compatible and complementary policies needed to make the trade reforms sustainable and increase their impact on economic growth described in Hallaert (2010).…”

Section: Data: Description and Limitationsmentioning

confidence: 99%

“…First, such access is an important determinant of investment and is thus needed to seize the opportunities obtained from trade and trade reforms (Hallaert, 2010).…”

Section: Source: Foch (2011)mentioning

confidence: 99%

“…This clearly suggests that regulatory reform increases the impact of trade on growth. All these variables are potentially key binding constraints to trade expansion ( Figure 1) and, as argued in Hallaert (2010), are for most of them part of the aid-for-trade agenda. It is therefore important to include them, as far as possible, in the econometric specifications tested in this report.…”

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confidence: 99%

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Estimating the Constraints to Trade of Developing Countries

Hallaert

Cepeda

Kang

2011

OECD Trade Policy Papers

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The severity of binding constraints to trade expansion in developing countries and the importance of the complementary policies that will maximize the impact of trade reforms on trade and economic growth are identified and quantified in this report. As trade-related needs of developing countries are numerous, such quantification is needed to identify the most binding constraints to guide the sequencing of reforms and aid-for-trade interventions. The constraints to trade expansion are largely country specific. However, countries which share important characteristics may face similar binding constraints. An econometric analysis is undertaken for as many partner countries as possible to produce an \unrestricted sample. that can be used as a benchmark against which special country groupings can be assessed. The econometric work relies on experimentation to identify and rank (based on their relative severity) the most binding constraints for each country grouping. Two case studies, on Azerbaijan and Uganda, illustrate the mechanisms of the econometric work and the importance of several variables not captured because of data limitationsresource rich countries, trade expansion, aid for trade, binding constraints, developing countries trade, taxonomy of constraints, landlocked countries, small and vulnerable economies

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Section: Executive Summarymentioning

confidence: 99%

Section: Estimating the Constraints To Trade Of Developing Countries -12mentioning

confidence: 99%

Section: Data: Description and Limitationsmentioning

confidence: 99%

“…First, such access is an important determinant of investment and is thus needed to seize the opportunities obtained from trade and trade reforms (Hallaert, 2010).…”

Section: Source: Foch (2011)mentioning

confidence: 99%

mentioning

confidence: 99%

See 3 more Smart Citations

Estimating the Constraints to Trade of Developing Countries

Hallaert

Cepeda

Kang

2011

OECD Trade Policy Papers

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The quality of Aid for Trade flows and economic complexity

Gnangnon

2024

Int Econ Econ Policy

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The few existing studies on the effect of Aid for Trade (AfT) flows on economic complexity have reached inconclusive outcomes. The present analysis re-examines this issue through the lens of the concept of 'quality of AfT flows' that takes into account not only the amount of AfT flows, but also the predictability and volatility of these capital inflows. A country enjoys a better quality of AfT flows if it receives higher AfT flows in a predictable and less volatiles fashions. We investigate the effect of the quality of AfT flows on economic complexity, over a set of 86 countries and the period from 2004 to 2019, and using the within fixed effects estimator and the Method of Moments Quantile Regression with fixed effects approach. The findings suggest that not only does a better quality of AfT flows fosters economic complexity in recipient countries, but its positive effect is larger in less complex economies (including poorest countries) than in relatively more complex economies among recipient countries. These findings reveal that what really matters for the enhancement of economic complexity in developing countries may not be only the amounts of the total AfT flows, but more importantly the predictability and the stability of these resource inflows. Improving the quality of AfT flows by increasing AfT amounts in a predictable and stable fashions would be beneficial to developing countries, and particularly to a greater extent to poorest countries among them.

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