There is not yet consensus in the trade agreements literature as to whether preferential liberalization leads to more or less multilateral liberalization.
... See More + However, research thus far has focused mostly on tariff measures of import protection. This paper develops more comprehensive measures of trade policy that include the temporary trade barrier policies of antidumping and safeguards. Studies in other contexts have also shown how these policies can erode some of the trade liberalization gains that arise when examining tariffs alone. This paper examines the experiences of Argentina and Brazil during the formation of the MERCOSUR over 1990-2001. The study finds that an exclusive focus on applied tariffs may lead to a mischaracterization of the relationship between preferential liberalization and liberalization toward non-member countries. First, any "building block" evidence that arises by focusing on tariffs during the period in which MERCOSUR was only a free trade area can disappear, once the analysis includes changes in import protection arise through temporary trade barriers. Furthermore, there is also evidence of a "stumbling block" effect of preferential tariff liberalization for the period in which MERCOSUR became a customs union, and this result tends to strengthen with the inclusion of temporary trade barriers. Finally, the paper provides a first empirical examination of whether market power motives can help explain the patterns of changes in import protection that are observed in these settings.
See Less -
Policy Research Working Paper WPS7865 OCT 18, 2016
Until 2010 Tunisia appeared to be doing well and was heralded by the World Bank and the IMF as a role model for other developing countries, and the World Economic Forum repeatedly ranked Tunisia as the most competitive economy in Africa.
... See More + Yet, the Tunisian model had serious flaws. Inadequate creation of jobs, notably for university graduates, and deep regional disparities were a source of increasing frustration across the country in the run up to the January 2011 Revolution. This development policy review shows that, in contrast to the façade often presented by the former regime, Tunisia's economic environment was and remains deeply deficient. The review highlights an economy that has remained frozen in low-value added activities and where firms are stagnating in terms of productivity and jobs creation. The review argues that Tunisian prosperity has been held back by policies that have reduced the countrys overall economic performance. This poor performance results from extensive barriers to entry and market restrictions coupled with a heavy business regulations and a poorly functioning financial system, have resulted in economic stagnation. Economic policies have exacerbated cronyism and rent-seeking, allowing under-performing firms to survive, regardless of their productivity. in order to fulfill its economic potential, Tunisia needs to create a level playing field by opening up the economy and removing Tunisia's three dualisms, namely the onshore-offshore division, the dichotomy between the coast and the interior, and the segmentation of the labor market. A strong social policy is also necessary, of course, and should be designed to accompany private sector-led growth. Tunisia can capitalize on a strong competitive advantage to export wage-intensive goods, expand its export of services, and unleash the potential of agriculture, to the benefit of small businesses, young graduates, and farmers in Tunisia's long-neglected interior regions. Realizing these benefits will require improving the investment climate, rationalizing regulations, and developing more equitable development policies that benefit all of Tunisia's regions. The Unfinished Revolution is a challenge for policymakers to rethink Tunisia's economic development model, to question existing assumptions, and to dare to think big about policy reforms which can accelerate growth and shared prosperity, create quality jobs and promote regional development.
See Less -
Development Policy Review (DPR) 86179 MAY 24, 2014
Until 2010 Tunisia appeared to be doing well and was heralded by the World Bank and the IMF as a role model for other developing countries, and the World Economic Forum repeatedly ranked Tunisia as the most competitive economy in Africa.
... See More + Yet, the Tunisian model had serious flaws. Inadequate creation of jobs, notably for university graduates, and deep regional disparities were a source of increasing frustration across the country in the run up to the January 2011 Revolution. This development policy review shows that, in contrast to the façade often presented by the former regime, Tunisia's economic environment was and remains deeply deficient. The review highlights an economy that has remained frozen in low-value added activities and where firms are stagnating in terms of productivity and jobs creation. The review argues that Tunisian prosperity has been held back by policies that have reduced the countrys overall economic performance. This poor performance results from extensive barriers to entry and market restrictions coupled with a heavy business regulations and a poorly functioning financial system, have resulted in economic stagnation. Economic policies have exacerbated cronyism and rent-seeking, allowing under-performing firms to survive, regardless of their productivity. in order to fulfill its economic potential, Tunisia needs to create a level playing field by opening up the economy and removing Tunisia's three dualisms, namely the onshore-offshore division, the dichotomy between the coast and the interior, and the segmentation of the labor market. A strong social policy is also necessary, of course, and should be designed to accompany private sector-led growth. Tunisia can capitalize on a strong competitive advantage to export wage-intensive goods, expand its export of services, and unleash the potential of agriculture, to the benefit of small businesses, young graduates, and farmers in Tunisia's long-neglected interior regions. Realizing these benefits will require improving the investment climate, rationalizing regulations, and developing more equitable development policies that benefit all of Tunisia's regions. The Unfinished Revolution is a challenge for policymakers to rethink Tunisia's economic development model, to question existing assumptions, and to dare to think big about policy reforms which can accelerate growth and shared prosperity, create quality jobs and promote regional development.
See Less -
Development Policy Review (DPR) 86179 MAY 24, 2014
Global capital rebalancing has highlighted structural weakness and vulnerability in South Asia, acting as a wake-up call for policy makers. While recent economic developments in advanced countries are encouraging, large parts of the South Asian region continue to slow.
... See More + Portfolio capital outflows, triggered by the prospect of unwinding quantitative easing in the US, have made current account deficits more difficult to finance across emerging countries. Meanwhile, supply-side constraints and macroeconomic imbalances remain to be tackled in most South Asian countries. But the depreciation of regional currencies offers a great opportunity to kick start exports and growth, and provides the space to re-engage reforms to create a conducive investment climate. This paper on the biannual regional economic update and outlook for South Asia includes the following headings: recent economic developments; outlook and policy; focus: business cycle transmission to and within South Asia; South Asia country briefs on Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Paklsitan, and Sri lanka; South Asia at a glance; and notes.
See Less -
The political and social upheavals that followed the Arab Spring of 2011 continue to dominate economic activity and near term prospects in the Middle East and North Africa (MENA).
... See More + Prior to the Arab Spring, aggregate investment and foreign direct investment (FDI) flows to MENA followed the rest of the world. This report shows that political turbulence since the early 2000s has affected not only the level of FDI in MENA, but also its composition. It has skewed towards activities that create the least jobs or that create jobs in non-resource tradable manufacturing and services needed for export upgrading and diversification. By hurting these efficiency-seeking investments, shocks to political stability exacerbate the clustering of FDI in the extractive industries and non-resource tradable sectors. The findings of the report outline several policy challenges and priorities. The report argues that MENA countries may find themselves in a resource trap unless they strengthen institutions and improve the investment climate, especially political and macroeconomic stability. Protecting the rule of law and property rights, and committing to stable and transparent policies will encourage investment, especially foreign investment in the labor-intensive non-oil manufacturing and service sectors of MENA, and thus job creation, growth, and structural transformation. Structural reforms address privileged businesses, macroeconomic imbalances, expensive subsidies, inadequate provision of infrastructure services, problems with education, and poorly functioning labor markets. These structural issues constrain growth with grim consequences for the unemployment problem, especially among youth and women. Achieving a consensus on political reforms is a necessary pre-requisite for sustainable, high growth in developing MENA.
See Less -
The least developed countries rely on preferential market access. To benefit from these preferences, proof of sufficient transformation must be provided to customs in importing countries by meeting the rules of origin requirements.
... See More + These rules of origin are complicated and burdensome to exporters in least developed countries. Since 2001, under the United States (U.S.) Africa Growth Opportunity Act (AGOA), 22 African countries that export apparel to the U.S. have been able to use fabric of any origin (single transformation) and still meet the criterion for preferential access (the so-called special rule). In contrast, the European Union (EU) has continued to require yarn to be woven into fabric and then made into apparel in the same country (double transformation). Panel estimates for the 1996-2004 period exploit this quasi-experimental change in the design of preferences. Estimates show that this simplification contributed to an increase in export volume of approximately 168 percent for the top seven beneficiaries, or approximately four times as much as the 44 percent growth effect from the initial preferential access under the AGOA without single transformation. This change in design was also important for diversity in apparel exports because the number of export varieties grew more rapidly under the AGOA special regime.
See Less -
Journal Article 112399 JUN 07, 2013
deMelo, Jaime; Portugal Perez,Luis AlbertoDisclosed
This overview, followed by five supporting reports, identifies these challenges of tomorrow, points to key choices ahead, and recommends not just what needs to be reformed, but how to undertake the reforms.
... See More + The overview is divided into nine chapters. The first chapter examines the characteristics of Chinas development since 1978; considers future opportunities, challenges, and risks; and describes a vision of China in the year 2030. The second chapter maps a new strategy that will realize this vision, focusing on the key choices ahead for China to sustain rapid economic and social development and become a modern, harmonious, and creative high-income society before 2030. Chapters three to eight elaborate on each of the six pillars of the new strategy: consolidating Chinas market foundations; enhancing innovation; promoting green development; ensuring equality of opportunity and social protection for all; strengthening public finances; and achieving mutually beneficial win-win relations between China and the rest of the world. The ninth and final chapter addresses implementation challenges, including the sequencing of reforms and overcoming obstacles that are likely to emerge.
See Less -
This overview, followed by five supporting reports, identifies these challenges of tomorrow, points to key choices ahead, and recommends not just what needs to be reformed, but how to undertake the reforms.
... See More + The overview is divided into nine chapters. The first chapter examines the characteristics of Chinas development since 1978; considers future opportunities, challenges, and risks; and describes a vision of China in the year 2030. The second chapter maps a new strategy that will realize this vision, focusing on the key choices ahead for China to sustain rapid economic and social development and become a modern, harmonious, and creative high-income society before 2030. Chapters three to eight elaborate on each of the six pillars of the new strategy: consolidating Chinas market foundations; enhancing innovation; promoting green development; ensuring equality of opportunity and social protection for all; strengthening public finances; and achieving mutually beneficial win-win relations between China and the rest of the world. The ninth and final chapter addresses implementation challenges, including the sequencing of reforms and overcoming obstacles that are likely to emerge.
See Less -
This book examines the state and the fate of the Doha Development Agenda (DDA). The volume has three key objectives: to provide qualitative and quantitative information about the implications of what is currently on the table; to examine controversial areas where further progress might be made; and to identify lessons that might be of use for future negotiations.
... See More + The analysis provides some suggestions for future negotiations, whether they involve comprehensive renegotiation of issues covered under the Doha Agenda, or entirely new negotiations. Conclusions include: there is much in the proposals already on the table; substantially more might be achieved in some key areas; and there is a case for new approaches in future negotiations. Finally, the volume identifies several critical trade-related matters that lie outside the DDA, such as the trade and trade policy implications of climate change mitigation, exchange rate management, food security, and energy security.
See Less -
Publication 65456 NOV 01, 2011
Martin, Will; Mattoo, Aaditya; Winkler, Deborah; Laborde, David; Blandford, David; Josling, Tim; Borchert, Ingo; Gootiiz, Batshur; Bouët, Antoine; Grant, Jason; Meilke, Karl; Taylor, Benjamin J.; Wilson, John S.; Hoekman, Bernard; van der Mensbrugghe, Dominique; Anderson, Kym; Nelgen, Signe; Brown, Chad P.; Prusa, Thomas J.; Subramanian, ArvindDisclosed
Lao PDR's real Gross Domestic Product (GDP) growth will remain robust in 2011 with projected growth of 8.6 percent compared to 8.4 percent in 2010.
... See More + Natural resources and manufacturing sectors are expected to drive growth this year. The expected growth in the garment exports (by about 15-20 percent in this year) follows the European Union (EU) relaxation in raw material sourcing requirement and increased orders by key garment producers. The service sector also shows signs of improvement, particularly in transport, tourism (hotels and restaurants) and retail trading. Agriculture (fishery, livestock and crops) is expected to benefit from the recent increase in regional demand and higher food prices. Out of 8.6 percent growth in 2011, about 3.6 percentage points come from the resource sectors, about 1 percentage point each from manufacturing and agriculture, 0.5 percentage points from construction and 2.5 percentage points from services. Although overall trade balance is expected to improve the current account deficit is expected to widen slightly too about 9.4 percent of GDP in 2011 from about 8.6 percent in 2010 mainly on the account of larger transfers of profits and debt service payments abroad by large resource projects. Thus, resource current account surplus is expected to decrease to 4.8 percent of GDP in this year from about 5.5 percent in 2010.
See Less -
This Results Profile talks about enhancing enterprise competitiveness in Moldova. The unfavorable business environment was one of the main constraints to improvements in productivity and competitiveness of Moldovan enterprises.
... See More + The Competitiveness Enhancement Project supported major improvements in the business environment in Moldova, reducing the time required to register a company and comply with regulatory requirements and cutting the number of annual inspections. Further, the project improved competitiveness and export capacity of businesses by supporting implementation of International Organization for Standardization quality certification and offering exporter’s access to long-term financing.
See Less -
This Results Profile talks about enhancing enterprise competitiveness in Moldova. The unfavorable business environment was one of the main constraints to improvements in productivity and competitiveness of Moldovan enterprises.
... See More + The Competitiveness Enhancement Project supported major improvements in the business environment in Moldova, reducing the time required to register a company and comply with regulatory requirements and cutting the number of annual inspections. Further, the project improved competitiveness and export capacity of businesses by supporting implementation of International Organization for Standardization quality certification and offering exporter’s access to long-term financing.
See Less -
This Results Profile talks about The Business Environment Reform and Institutional Strengthening Project (BERIS) in Former Yugoslav Republic of Macedonia.
... See More + The economy faced numerous challenges, such as a weak judicial sector, low competitiveness in an increasingly global market, slow materialization of foreign direct investments, and significant regulatory and institutional weaknesses that reduced investor confidence and affected the private sector’s ability to compete. In addition, national Metrology, Standardization, Testing and Quality system was outdated, which deprived the Macedonian enterprises of the appropriate means to control the quality of imported goods or to certify that the quality of their exported goods meets required standards. The World Bank provided assistance with policy reforms and capacity building through a combination of complementary investment and policy lending. BERIS assisted the government in implementing selected policy areas supported by a parallel series of Development Policy Loans. The project also accomplished notable improvements in the business environment by considerably simplifying and streamlining the regulatory environment for opening, operating and closing a business. As a result, investor protection was strengthened and the company law was revised in line with the European Union (EU) requirements. Business registration had been simplified and shortened to one day through the creation of a one-stop shop at the Central Registry. New calibration equipment for the Bureau of Metrology broadened the calibration services to companies in line with EU requirements and quality standards and increased their export potential and competitiveness.
See Less -
This is the Annual Report on the operation of the International Centre for Settlement of Investment Disputes (ICSID) required by Article 6(1)(g) of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.
... See More + This Annual Report covers the fiscal year July 1, 2005 to June 30, 2006. In fiscal year 2006, the number of ICSID pending cases reached an all-time high of 118. The total number of conciliation and arbitration proceedings registered with the Centre since its inception rose to 210 with the addition of 26 new arbitration cases instituted in the course of the fiscal year. The Secretariat continued its efforts to mitigate the impact of the significant caseload involving large and complex disputes by promoting more efficient ways of case management. During the year, ICSID's membership grew to 143 Contracting States following the ratification of the ICSID Convention by Syria.
See Less -
This regional report for Khabarovsk Krai in Russia is part of a survey that was conducted in the period from February the 1st to October the 17th, in 15 regions of Russia: Irkutsk, Nizhniy Novgorod, Novosibirsk, Rostov, Perm, Sakhalin, Kaliningrad, Leningrad, Moscow, Sverdlovsk, Tomsk and Novgorod Oblasts, Khabarovsk Krai and the cities of Saint Petersburg and Moscow.
... See More + Among the procedures that imply obtaining land plot either as ownership or tenancy the overwhelming majority of legal entities and sole proprietors that attempted, underwent, or completed locating procedures in 2004 passed the procedure for obtaining tenancy rights. In respect to legal entities and sole proprietors providing intermediary services for locating procedures, it is impossible to pick out any tendency on account of low count of the respondents who passed the appropriate procedures. The most frequently completed procedure connected with real estate objects (building, structure, premise) for ARCS companies became the procedure of leasing a real estate object (building, structure, premise), which is municipal property without the procedure of tender (including purposive appointment cases). This paper includes a main report and an annex.
See Less -
This paper first explains the potential importance of World Trade Organization (WTO) accession as a development tool, and discusses the recent successful development models and the role of trade policy in their development.
... See More + The paper then summarizes the three parts of the Handbook. The first part treats trade policy (with applications to Russia and the Commonwealth of Independent States [CIS]). The second part treats World Trade Organization institutions and disciplines, again with Russia and CIS applications. And the third part focuses on various aspects of the impact of WTO accession on Russia.
See Less -
