Strengthening Bolivian
Competitiveness : Export Diversification and Inclusive Growth

Strengthening Bolivian Competitiveness : Export Diversification and Inclusive Growth

Bolivia's trade liberalization, launched in the mid-1980s, has resulted in a relatively open trade regime; but the results have been mixed. Bolivia's export to Gross Domestic Product (GDP) ratio and export entrepreneurship index rating ar...

Full description

Bibliographic Details
Main Author:	World Bank
Format:	Publication
Language:	English
Published:	World Bank 2012
Subjects:	AGGREGATE DEMAND AGRICULTURAL PRODUCTS AGRICULTURE APPAREL BORDER TRADE BUSINESS ENVIRONMENT CAPITAL FLOWS CAPITAL GOODS CAPITAL INFLOWS CAPITAL STOCK CENTRAL BANK COMMODITIES COMPARATIVE ADVANTAGE COMPETITIVENESS CONSUMERS COPYRIGHT CLEARANCE COPYRIGHT CLEARANCE CENTER CURRENCY CUSTOMS CUSTOMS ADMINISTRATION CUSTOMS REVENUES DEBT DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT STRATEGY DIVIDENDS DOMESTIC INDUSTRIES DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCERS DUMPING DUTY DRAWBACK DUTY DRAWBACKS ECONOMETRIC ESTIMATES ECONOMETRIC MODELS ECONOMIC COMPETITIVENESS ECONOMIC DISTORTIONS ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC PROGRESS ECONOMIC SECTORS ECONOMIC STABILIZATION ECONOMIC STRUCTURE ECONOMIES OF SCALE EQUILIBRIUM EXPORT BANS EXPORT BIAS EXPORT COMPETITIVENESS EXPORT CONTROLS EXPORT DIVERSIFICATION EXPORT EARNINGS EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORT OPPORTUNITIES EXPORT PERFORMANCE EXPORT PRICES EXPORT PROCEDURES EXPORT PRODUCTS EXPORT PROMOTION EXPORT PROMOTION AGENCIES EXPORT PROMOTION AGENCY EXPORT RESTRICTIONS EXPORT SECTOR EXPORT SECTORS EXPORT STRUCTURE EXPORT SUBSIDIES EXPORT VOLUME EXPORT VOLUMES EXPORTERS EXPORTS EXTERNAL TARIFF FISCAL POLICY FOREIGN COMPETITION FOREIGN COMPETITORS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN TECHNOLOGIES FOREIGN TECHNOLOGY FOREIGN TRADE FRANCHISES FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TRADE AREA FREE TREATMENT GDP GENERALIZED SYSTEM OF PREFERENCES GLOBAL COMPETITIVENESS GLOBAL TRADE GRANGER CAUSALITY GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HOTELS HUMAN CAPITAL IMPACT OF TRADE IMPORT DUTIES IMPORT QUOTAS IMPORT REGIME IMPORT TARIFFS IMPORT TAXES IMPORTS INCOME INDUSTRIAL PRODUCTS INDUSTRIALIZATION INEQUALITY INFANT INDUSTRY INFLATION INTERNATIONAL COMPETITIVENESS INTERNATIONAL FINANCE INTERNATIONAL MARKET INTERNATIONAL MARKETS INTERNATIONAL PRICES INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVESTMENT POLICIES ITC LEARNING CAPACITY LIQUIDITY MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET FAILURES MARKET SIZE METAL PRODUCTS MONETARY POLICY MONOPOLIES MONOPOLY MOST FAVORED NATION NATURAL RESOURCES NET EXPORTS NEW PRODUCTS NON-TARIFF BARRIERS OPEN ECONOMIES OPEN MARKET OPEN MARKET OPERATIONS OPEN TRADE REGIME OPENNESS OUTPUT OUTSOURCING PARTIAL EQUILIBRIUM ANALYSIS PATENTS POSITIVE EFFECTS PREFERENTIAL ACCESS PREFERENTIAL ACCESS TO MARKETS PREFERENTIAL AGREEMENT PREFERENTIAL AGREEMENTS PREFERENTIAL MARKET ACCESS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TREATMENT PRICE INCREASES PRICE INDEX PRICE STABILITY PRICE SUPPORT PRODUCTION INPUTS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS QUANTITATIVE RESTRICTIONS RATE OF PREFERENCE REAL EXCHANGE RATE REAL EXCHANGE RATES REAL GDP REGIONAL INTEGRATION REGULATORY FRAMEWORK RENT SEEKING SHARE OF WORLD EXPORTS SPECIALIZATION STRUCTURAL CHANGE TARIFF BARRIERS TARIFF EQUIVALENT TARIFF POLICY TARIFF PREFERENCES TARIFF PROTECTION TARIFF RATE TARIFF REVENUE TARIFF STRUCTURE TAX TAX POLICY TAX REVENUES TAX TREATMENT TECHNOLOGY TRANSFER TELECOMMUNICATIONS TERMS OF TRADE TERMS OF TRADE SHOCKS TOTAL FACTOR PRODUCTIVITY TOURISM TRADE AGREEMENT TRADE BALANCE TRADE CENTER TRADE FACILITATION TRADE FLOWS TRADE INDICATORS TRADE INTEGRATION TRADE LIBERALIZATION TRADE OPENNESS TRADE POLICY TRADE PROMOTION TRADE REGIMES TRADE RELATIONS TRADE STRUCTURE TRADE TAXES TRANSPORT COSTS UNILATERAL PREFERENCES VALUE ADDED VALUE OF EXPORTS WAGES WEALTH WORLD ECONOMY WORLD MARKETS WORLD PRICES WORLD TRADE WORLD TRADE ORGANIZATION WTO ZERO TARIFF
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20090812003214 http://hdl.handle.net/10986/2656

Description
Summary:	Bolivia's trade liberalization, launched in the mid-1980s, has resulted in a relatively open trade regime; but the results have been mixed. Bolivia's export to Gross Domestic Product (GDP) ratio and export entrepreneurship index rating are among the highest in the Latin American and Caribbean (LAC) region and the country has achieved great success in making soya the major export crop in less than 10 years. At the same time, the country's share in world trade has stagnated and exports are increasingly dominated by gas and minerals. Reinvigorating the nontraditional 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 nontraditional export strategy should build on successes in the traditional sector. This study investigates: (a) the role trade should play in Bolivia's development strategy considering the country's natural resource endowment; (b) the lessons of Bolivia's integration to the world economy; (c) the linkages between Bolivia's past trade and economy and a forward-looking analysis of the impact of different scenarios on growth, employment, trade flows, and poverty; (d) constraints to higher export competitiveness and weaknesses related to transport and logistics; and (e) the characteristics of exporting firms and the constraints affecting them. The main findings of the analysis are that preferential access to world markets is necessary but not sufficient for success in nontraditional exports; rather, success depends largely on increasing the competitiveness of exporting firms. Second, a neutral incentive regime is essential to the growth of nontraditional exports. Third, efficient backbone services are vital for reducing exporters' costs. Finally, the government should be proactive in addressing institutional impediments to cross-border trade. The study presents prioritized policy implications of the analysis related to: (i) trade policy and preferential access to markets; (ii) the incentives regime; (iii) backbone services; (iv) increasing the effectiveness of institutions to promote cross-border trade; and (v) setting the foundations for exports diversification.