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Estimating the Constraints to Trade of Developing Countries

Author

Listed:
  • Jean-Jacques Hallaert

    (OECD)

  • Ricardo H. Cavazos Cepeda

    (OECD)

  • Gimin Kang

    (OECD)

Abstract

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 limitations

Suggested Citation

  • Jean-Jacques Hallaert & Ricardo H. Cavazos Cepeda & Gimin Kang, 2011. "Estimating the Constraints to Trade of Developing Countries," OECD Trade Policy Papers 116, OECD Publishing.
    • Handle: RePEc:oec:traaab:116-en
    DOI: 10.1787/5kg9mq8mx9tc-en
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Trade constraints of developing countries
      by Economic Logician in Economic Logic on 2011-07-26 19:14:00

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    Cited by:

    1. Ingo Borchert & Batshur Gootiiz & Arti Grover Goswami & Aaditya Mattoo, 2017. "Services Trade Protection and Economic Isolation," The World Economy, Wiley Blackwell, vol. 40(3), pages 632-652, March.
    2. Rubínová, Stela & Sebti, Mehdi, 2021. "The WTO Global Trade Costs Index and its determinants," WTO Staff Working Papers ERSD-2021-6, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. Chiara Criscuolo & Jonathan Timmis, 2017. "The Relationship Between Global Value Chains and Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 32, pages 61-83, Spring.
    4. Borchert, Ingo & Gootiiz, Batshur & Grover, Arti & Mattoo, Aaditya, 2012. "Landlocked or policy locked ? how services trade protection deepens economic isolation," Policy Research Working Paper Series 5942, The World Bank.
    5. Nguyen, Nguyen Trinh Thanh, 2022. "EU aid for trade as contested trade policy intervention: The case of the EU-MUTRAP project in Vietnam," OSF Preprints 4xa2h, Center for Open Science.
    6. Bhisma K. Bhusal & James R. Wilson & Susana Franco, 2014. "Rethinking Policy Intervention for the Transition towards Competitive Trade-Led Green Growth," Working Papers 2014R02, Orkestra - Basque Institute of Competitiveness.
    7. International Monetary Fund, 2013. "France: Selected Issues," IMF Staff Country Reports 2013/003, International Monetary Fund.

    More about this item

    Keywords

    aid for trade; binding constraints; developing countries trade; landlocked countries; resource rich countries; small and vulnerable economies; taxonomy of constraints; trade expansion;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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    1. Economic Logic blog

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