Aid for Trade, Infrastructure, and the Growth Effects of Trade Reform : Issues and Implications for Caribbean Countries

This paper examines how aid-for-trade programs can help to magnify the growth benefits that developing countries can reap from trade reform and global integration, with a special emphasis on the Caribbean region. The first part discusses various ra...

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Bibliographic Details
Main Author:	Moreira, Emmanuel Pinto
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ADVERSE DEMAND ADVERSE EFFECT ADVERSE EFFECTS AGRICULTURE AVERAGE TARIFF AVERAGE TARIFFS AVERAGE TRADE BALANCE OF PAYMENTS BARRIER BILATERAL INSTITUTIONS BUDGET DEFICITS BUSINESS CLIMATE BUSINESS CYCLES CAPACITY BUILDING CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL NEEDS CAPITAL STOCK COLLATERAL COMPETITIVENESS CREDITWORTHINESS CROWDING OUT CURRENCY CURRENCY UNION CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT CUSTOMS PROCEDURES DEBT DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT STRATEGIES DEVELOPMENT STRATEGY DISTORTED INCENTIVES DIVIDEND DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES DOMESTIC PRODUCERS DOMESTIC PRODUCTION DOMESTIC PRODUCTS DOMESTIC TAX SYSTEM ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC REFORM ECONOMIC RESEARCH EMPIRICAL EVIDENCE EMPIRICAL STUDIES EQUIPMENT EQUITY INVESTMENT EXCHANGE RATE EXCHANGE RATE MOVEMENT EXPENDITURE EXPENDITURES EXPORT GROWTH EXPORT MARKET EXPORT PERFORMANCE EXPORT PRICES EXPORTS EXTERNAL BORROWING EXTERNAL TRADE EXTERNALITIES FINAL GOODS FINANCIAL CRISIS FINANCIAL INTEGRATION FINANCIAL SECTOR FINANCIAL SECTORS FISCAL CONSTRAINTS FISCAL DEFICIT FISCAL DEFICITS FISH FIXED SHARES FOOD PRODUCTION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FREE TRADE GDP GDP PER CAPITA GLOBAL INTEGRATION GLOBAL TRADE GLOBALIZATION GOVERNMENT BORROWING GOVERNMENT REVENUE GOVERNMENT SPENDING GROWTH RATE GROWTH RATES HUMAN CAPITAL IMPACT OF TRADE IMPACT OF TRADE REFORMS IMPORT TARIFFS INCOME INCOME TAX INFLATION INFLATION STABILIZATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROJECTS INSTITUTION BUILDING INSTITUTIONAL CAPACITY INSTITUTIONAL CONSTRAINTS INSTITUTIONAL ENVIRONMENT INTELLECTUAL PROPERTY INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL BANK INTERNATIONAL COMPETITIVENESS INTERNATIONAL MARKETS INTERNATIONAL ORGANIZATIONS INTERNATIONAL TRADE INTERNATIONAL TRANSPORT INVENTORY INVESTMENT CLIMATE INVESTMENT RATES ITC KNOWLEDGE SPILLOVERS LABOR FORCE LABOR MARKET LABOR MARKET ADJUSTMENT LABOR MARKETS LOSS OF REVENUE LOST TARIFF REVENUE LOW-INCOME COUNTRIES MARGINAL PRODUCTIVITY MARKET ACCESS MARKET ACCESS OPPORTUNITIES MARKET REFORMS MIDDLE-INCOME COUNTRIES MIDDLE-INCOME COUNTRY MOBILE PHONE MORAL HAZARD MULTILATERAL AGENCIES NATIONAL DEVELOPMENT NEW MARKET NEW MARKET OPPORTUNITIES OIL OIL IMPORTS OUTPUT OUTPUTS POLITICAL ECONOMY POPULATION GROWTH POSITIVE EFFECTS POSITIVE EXTERNALITIES PRICE OF IMPORTS PRIVATE CAPITAL PRIVATE CONSUMPTION PRIVATE FINANCING PRIVATE INVESTMENT PRODUCERS PRODUCTION COSTS PRODUCTIVITY PROPERTY RIGHTS PUBLIC DEBT PUBLIC GOODS PUBLIC INVESTMENT PUBLIC SAVINGS PUBLIC SPENDING QUALITY STANDARDS QUANTITATIVE RESTRICTIONS QUOTAS REAL EXCHANGE RATE REAL GDP REAL WAGES RED TAPE REDUCTION IN TARIFFS REGIONAL INTEGRATION REGRESSION ANALYSIS REGULATORY ENVIRONMENT SHARE OF WORLD TRADE SIDE EFFECTS SPECIALIZATION TARIFF RATE TARIFF RATES TARIFF REDUCTION TARIFF REDUCTIONS TARIFF REVENUE TARIFF REVENUES TAX TAX COLLECTION TAX RATE TAX RATES TAX REFORM TAX REFORMS TAX REVENUE TAX REVENUES TAX SYSTEM TAX SYSTEMS TAXATION TECHNICAL ASSISTANCE TRADABLE GOODS TRADE AGREEMENT TRADE AGREEMENTS TRADE BALANCE TRADE BARRIERS TRADE COSTS TRADE DIVERSION TRADE EFFECTS TRADE EXPANSION TRADE FACILITATION TRADE FLOWS TRADE INTEGRATION TRADE LIBERALIZATION TRADE OPENNESS TRADE PERFORMANCE TRADE POLICY TRADE REFORM TRADE REFORMS TRADE REGIMES TRADE TAX TRADE TAXES TRADING TRANSPORT COSTS UNEMPLOYMENT UNEMPLOYMENT RATE VOLATILITY WELFARE EFFECTS WELFARE GAINS WORLD ECONOMY WORLD MARKETS WTO
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=000158349_20100407160813 http://hdl.handle.net/10986/3752

Description
Summary:	This paper examines how aid-for-trade programs can help to magnify the growth benefits that developing countries can reap from trade reform and global integration, with a special emphasis on the Caribbean region. The first part discusses various rationales for trade-related aid, viewed both as a compensatory scheme (aimed at cushioning the impact of revenue cuts and adjustment costs) and a promotion scheme (aimed at alleviating supply-side constraints). In the latter case, particular attention is paid to the role of infrastructure as a constraining factor on trade expansion. The second part discusses the relevance of aid-for-trade arguments for Caribbean countries and identifies a number of specific issues for the region. The third part illustrates the potential growth effects of aid-for-trade programs with simulation results for the Dominican Republic -- a country where infrastructure indicators remain relatively weak. The results illustrate the potentially large growth benefits that a temporary and well-targeted aid-for-trade program can provide to countries of the region.

Aid for Trade, Infrastructure, and the Growth Effects of Trade Reform : Issues and Implications for Caribbean Countries

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