Reports on Trade, Regional Integration and Investment Climate

The reports presented below cover a range of policy relevant issues aiming at harvesting the benefits from international trade, promoting regional integration and improving countries' investment climate. Relevant issues include: (1) Assessing the economic and social impact of free trade agreements, including the identification of policy measures to assist population groups in adapting to a more competitive environment. (2) Designing policies aimed at increasing export diversification, reducing the 'behind-the-border-constraints' of trade, and accelerating regional integration. (3) Providing practical policy options that can help policy makers improve the investment environment, increase competitiveness and accelerate growth.

Highlights

Accelerating Trade and Integration in the Caribbean: Policy Options for Sustained Growth, Job Creation, and Poverty Reduction (2009)

The main objective of this report is to help policymakers in the Caribbean design an agenda of policy actions to accelerate trade integration and growth, and to reduce poverty. Each part of the report focuses on a key question and provides an in-depth analysis of the issues raised, laying the foundations for policy recommendations described in the last chapter of the report. Part I asks whether the Caribbean’s economic and trade system are sound enough to sustain the new era of its global trade relations. Part II addresses the opportunities and challenges that the new trade environment offers to the Caribbean. Part III assesses the impact of the recently-negotiated Economic Partnership Agreement on growth and poverty reduction using two types of macroeconomic models. The report concludes with policy priorities for accelerating Caribbean integration into the world economy and for reaping the benefits of global competition. This study analyzes the complicated and dynamic nature of welfare differences accross space in the region. + more...

Trade Challenges in Landlocked Paraguay: a Diagnostic of Paraguayan Export Growth, Competitiveness, and MERCOSUR (2009)

This trade study provides a diagnostic of Paraguay's export performance over the last two decades in order to identify the main challenges facing Paraguayan producers. The report analyzes trade outcomes with respect to the types of products being exported as well as the destination markets. By assessing Paraguay's export trends, particularly with its main MERCOSUR (Southern Common Market - Mercado Comun del Sur) trading partners, this study represents an initial analysis that can inform policy deliberations and identify areas in which additional research is warranted. The report describes the trade policy environment and the resulting levels of protection that emerge, as well as the non-tariff barriers that either limit Paraguay's access to its MERCOSUR partners or protect Paraguay's agriculture sector. The rest of the report is structured as follows. Chapter two provides a description of trade policies in Paraguay, with particular attention to MERCOSUR. Chapter three assesses the welfare effects of trade policy using household survey data to determine the extent to which poor households benefit from trade policy variations. Chapter five reviews the behind-the-border constraints impeding better trade outcomes in terms of the regulatory and institutional environments as well as trade logistics factors linked to transport and customs. + more...

Local Gains from Global Opportunities: Improving Central America's Investment Climate (2008)

DR-CAFTA represents a unique opportunity for the Central America region to enhance the investment climate, achieve faster growth, and reduce poverty. This Central America Investment Climate Assessment presents an evaluation of challenges faced by businesses in the region (which includes Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama) and provides practical policy options that can help policy makers improve the investment environment, increase competitiveness and accelerate growth. The study includes analysis of (i) the Central American macroeconomic environment and the role of the investment climate under free trade; (ii) infrastructure bottlenecks  (including those in roads, ports, energy and telecommunications)  (iii) challenges in governance and security, (iv) the ease in which firms (small medium and large) can gain access to finance, and (v)  the role of innovation and training and its link to competitiveness.  The study also benchmarks relative to other regions in the world  in terms of its investment climate and provides practical recommendations for setting country and regional policy and investment priorities. + more...

Strengthening Bolivian Competitiveness -Export Diversification and Inclusive Growth (2009)

Reinvigorating the non-traditional export sector is important for the government of Bolivia as it implements its National Development Plan. As a resource rich country, the Bolivian government’s emphasis on export diversification is well-placed but the optimal non-traditional export strategy should build on successes in the traditional sector. This report investigates (1) the role trade should play in Bolivia’s development strategy considering the country’s natural resource endowment, (2) the lessons of Bolivia’s integration to the world economy, (3) the linkages between Bolivia’s trade and the economy in the past but also a forward- looking analysis of the impact of different scenarios on growth, employment, trade flows, and poverty. (4) constraints to higher export competitiveness and weaknesses related to transport and logistics and (5) the characteristics of exporting firms and the constraints affecting them. + more...