Recent Evidence on Private Sector Capabilities, Trade Liberalization, Foreign Direct Investment, and Deregulation Are Not Enough
This paper summarizes new empirical findings concerning the magnitude of market failures affecting industrial performance and innovation, firm dynamics after economic policy reforms, and the effectiveness of popular government interventions designed to promote exports and foreign direct investment (...
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| Format: | Foreign Trade, FDI, and Capital Flows Study |
| Language: | English en_US |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/06/16326917/recent-evidence-private-sector-capabilities-trade-liberalization-foreign-direct-investment-deregulation-not-enough-latin-america-caribbean-recent-evidence-private-sector-capabilities-trade-liberalization-foreign-direct-investment-deregulation-not-enough http://hdl.handle.net/10986/8204 |
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okr-10986-82042021-04-23T14:02:38Z Recent Evidence on Private Sector Capabilities, Trade Liberalization, Foreign Direct Investment, and Deregulation Are Not Enough Lederman, Daniel Olarreaga, Marcelo AGRICULTURE APPAREL APPAREL EXPORTS APPAREL INDUSTRIES APPAREL INDUSTRY APPAREL PREFERENCES APPAREL SECTOR ASYMMETRIC INFORMATION BARGAINING BARGAINING POWER BARRIERS TO ENTRY BENEFICIARIES BENEFICIARY BORDER TRADE BRANDS COMMERCIAL POLICY COMPARATIVE ADVANTAGE COMPETITIVENESS CONSUMER GOODS COORDINATION FAILURE COORDINATION FAILURES DATA QUALITY DEREGULATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DIMINISHING RETURNS ECONOMETRIC ESTIMATES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC STRUCTURE ECONOMIC VOLATILITY EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT GROWTH EXPORT MARKETS EXPORT PRICES EXPORTER EXPORTERS EXPORTS EXTERNALITIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FREE MARKET FREE MARKETS FREE TRADE FREE TRADE AGREEMENTS FUTURE MARKETS GEOGRAPHIC PROXIMITY GLOBAL MARKETS GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT SUPPORT HIGH TRADE BARRIERS HUMAN RESOURCES IMPACT OF TRADE INDUSTRIAL ECONOMICS INDUSTRIAL RESTRUCTURING INNOVATION INNOVATIONS INSURANCE INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INVESTMENT LIBERALIZATION INVESTMENT REGIME INVISIBLE HAND KNOWLEDGE SPILLOVERS LABOR FORCE LAISSEZ FAIRE LOCAL MARKET MACROECONOMIC ENVIRONMENT MARKET ACCESS MARKET FAILURES MARKET REFORMS MARKET RESEARCH MARKET SHARE MARKETING MISSING MARKETS OPEN ECONOMIES PREFERENTIAL ACCESS PREFERENTIAL MARKET ACCESS PRICE ADVANTAGE PRICE ADVANTAGES PRICE INCREASES PRIVATE INVESTMENT PROCESS OF ADJUSTMENT PRODUCT QUALITY PRODUCTION COSTS PRODUCTIVITY PROFIT MARGINS REAL WAGES RENTS RETAIL RETURN RULES OF ORIGIN SAFETY SAFETY STANDARDS SPREAD SUBSTITUTES SUPPLIERS TAXATION TELEPHONE PENETRATION TRADE AGREEMENT TRADE BARRIERS TRADE DATA TRADE FLOWS TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS TRADEMARK TRADING TRADING SYSTEM TRANSACTIONS COSTS VALUE OF EXPORTS VOLATILITY WAGES WORLD MARKET WORLD TRADING SYSTEM This paper summarizes new empirical findings concerning the magnitude of market failures affecting industrial performance and innovation, firm dynamics after economic policy reforms, and the effectiveness of popular government interventions designed to promote exports and foreign direct investment (FDI). Regarding the effectiveness of public subsidies and targeted services, new evidence suggests that innovation policies targeting both patentable and non-patentable innovations, might yield higher returns in terms of innovative activity if they are broadly diversified across products within broad industrial categories, and revealed comparative advantage by itself provides little guidance as to what these innovative sectors might be. In general, efforts to promote exports and FDI seem to be effective on their own terms when the returns to public expenditures in these areas are measured by their effects on the value of exports and FDI inflows. However, there is significant heterogeneity both across regions and across types of expenditures. Overall, the recent research suggests that trade reforms and deregulation are not enough to sustain long-term development. 2012-06-15T20:21:10Z 2012-06-15T20:21:10Z 2006-06 http://documents.worldbank.org/curated/en/2006/06/16326917/recent-evidence-private-sector-capabilities-trade-liberalization-foreign-direct-investment-deregulation-not-enough-latin-america-caribbean-recent-evidence-private-sector-capabilities-trade-liberalization-foreign-direct-investment-deregulation-not-enough http://hdl.handle.net/10986/8204 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study Economic & Sector Work Latin America & Caribbean |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURE APPAREL APPAREL EXPORTS APPAREL INDUSTRIES APPAREL INDUSTRY APPAREL PREFERENCES APPAREL SECTOR ASYMMETRIC INFORMATION BARGAINING BARGAINING POWER BARRIERS TO ENTRY BENEFICIARIES BENEFICIARY BORDER TRADE BRANDS COMMERCIAL POLICY COMPARATIVE ADVANTAGE COMPETITIVENESS CONSUMER GOODS COORDINATION FAILURE COORDINATION FAILURES DATA QUALITY DEREGULATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DIMINISHING RETURNS ECONOMETRIC ESTIMATES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC STRUCTURE ECONOMIC VOLATILITY EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT GROWTH EXPORT MARKETS EXPORT PRICES EXPORTER EXPORTERS EXPORTS EXTERNALITIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FREE MARKET FREE MARKETS FREE TRADE FREE TRADE AGREEMENTS FUTURE MARKETS GEOGRAPHIC PROXIMITY GLOBAL MARKETS GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT SUPPORT HIGH TRADE BARRIERS HUMAN RESOURCES IMPACT OF TRADE INDUSTRIAL ECONOMICS INDUSTRIAL RESTRUCTURING INNOVATION INNOVATIONS INSURANCE INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INVESTMENT LIBERALIZATION INVESTMENT REGIME INVISIBLE HAND KNOWLEDGE SPILLOVERS LABOR FORCE LAISSEZ FAIRE LOCAL MARKET MACROECONOMIC ENVIRONMENT MARKET ACCESS MARKET FAILURES MARKET REFORMS MARKET RESEARCH MARKET SHARE MARKETING MISSING MARKETS OPEN ECONOMIES PREFERENTIAL ACCESS PREFERENTIAL MARKET ACCESS PRICE ADVANTAGE PRICE ADVANTAGES PRICE INCREASES PRIVATE INVESTMENT PROCESS OF ADJUSTMENT PRODUCT QUALITY PRODUCTION COSTS PRODUCTIVITY PROFIT MARGINS REAL WAGES RENTS RETAIL RETURN RULES OF ORIGIN SAFETY SAFETY STANDARDS SPREAD SUBSTITUTES SUPPLIERS TAXATION TELEPHONE PENETRATION TRADE AGREEMENT TRADE BARRIERS TRADE DATA TRADE FLOWS TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS TRADEMARK TRADING TRADING SYSTEM TRANSACTIONS COSTS VALUE OF EXPORTS VOLATILITY WAGES WORLD MARKET WORLD TRADING SYSTEM |
| spellingShingle |
AGRICULTURE APPAREL APPAREL EXPORTS APPAREL INDUSTRIES APPAREL INDUSTRY APPAREL PREFERENCES APPAREL SECTOR ASYMMETRIC INFORMATION BARGAINING BARGAINING POWER BARRIERS TO ENTRY BENEFICIARIES BENEFICIARY BORDER TRADE BRANDS COMMERCIAL POLICY COMPARATIVE ADVANTAGE COMPETITIVENESS CONSUMER GOODS COORDINATION FAILURE COORDINATION FAILURES DATA QUALITY DEREGULATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DIMINISHING RETURNS ECONOMETRIC ESTIMATES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC STRUCTURE ECONOMIC VOLATILITY EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT GROWTH EXPORT MARKETS EXPORT PRICES EXPORTER EXPORTERS EXPORTS EXTERNALITIES FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FREE MARKET FREE MARKETS FREE TRADE FREE TRADE AGREEMENTS FUTURE MARKETS GEOGRAPHIC PROXIMITY GLOBAL MARKETS GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT SUPPORT HIGH TRADE BARRIERS HUMAN RESOURCES IMPACT OF TRADE INDUSTRIAL ECONOMICS INDUSTRIAL RESTRUCTURING INNOVATION INNOVATIONS INSURANCE INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INVESTMENT LIBERALIZATION INVESTMENT REGIME INVISIBLE HAND KNOWLEDGE SPILLOVERS LABOR FORCE LAISSEZ FAIRE LOCAL MARKET MACROECONOMIC ENVIRONMENT MARKET ACCESS MARKET FAILURES MARKET REFORMS MARKET RESEARCH MARKET SHARE MARKETING MISSING MARKETS OPEN ECONOMIES PREFERENTIAL ACCESS PREFERENTIAL MARKET ACCESS PRICE ADVANTAGE PRICE ADVANTAGES PRICE INCREASES PRIVATE INVESTMENT PROCESS OF ADJUSTMENT PRODUCT QUALITY PRODUCTION COSTS PRODUCTIVITY PROFIT MARGINS REAL WAGES RENTS RETAIL RETURN RULES OF ORIGIN SAFETY SAFETY STANDARDS SPREAD SUBSTITUTES SUPPLIERS TAXATION TELEPHONE PENETRATION TRADE AGREEMENT TRADE BARRIERS TRADE DATA TRADE FLOWS TRADE LIBERALIZATION TRADE POLICY TRADE REFORMS TRADEMARK TRADING TRADING SYSTEM TRANSACTIONS COSTS VALUE OF EXPORTS VOLATILITY WAGES WORLD MARKET WORLD TRADING SYSTEM Lederman, Daniel Olarreaga, Marcelo Recent Evidence on Private Sector Capabilities, Trade Liberalization, Foreign Direct Investment, and Deregulation Are Not Enough |
| geographic_facet |
Latin America & Caribbean |
| description |
This paper summarizes new empirical findings concerning the magnitude of market failures affecting industrial performance and innovation, firm dynamics after economic policy reforms, and the effectiveness of popular government interventions designed to promote exports and foreign direct investment (FDI). Regarding the effectiveness of public subsidies and targeted services, new evidence suggests that innovation policies targeting both patentable and non-patentable innovations, might yield higher returns in terms of innovative activity if they are broadly diversified across products within broad industrial categories, and revealed comparative advantage by itself provides little guidance as to what these innovative sectors might be. In general, efforts to promote exports and FDI seem to be effective on their own terms when the returns to public expenditures in these areas are measured by their effects on the value of exports and FDI inflows. However, there is significant heterogeneity both across regions and across types of expenditures. Overall, the recent research suggests that trade reforms and deregulation are not enough to sustain long-term development. |
| format |
Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study |
| author |
Lederman, Daniel Olarreaga, Marcelo |
| author_facet |
Lederman, Daniel Olarreaga, Marcelo |
| author_sort |
Lederman, Daniel |
| title |
Recent Evidence on Private Sector Capabilities, Trade Liberalization, Foreign Direct Investment, and Deregulation Are Not Enough |
| title_short |
Recent Evidence on Private Sector Capabilities, Trade Liberalization, Foreign Direct Investment, and Deregulation Are Not Enough |
| title_full |
Recent Evidence on Private Sector Capabilities, Trade Liberalization, Foreign Direct Investment, and Deregulation Are Not Enough |
| title_fullStr |
Recent Evidence on Private Sector Capabilities, Trade Liberalization, Foreign Direct Investment, and Deregulation Are Not Enough |
| title_full_unstemmed |
Recent Evidence on Private Sector Capabilities, Trade Liberalization, Foreign Direct Investment, and Deregulation Are Not Enough |
| title_sort |
recent evidence on private sector capabilities, trade liberalization, foreign direct investment, and deregulation are not enough |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/06/16326917/recent-evidence-private-sector-capabilities-trade-liberalization-foreign-direct-investment-deregulation-not-enough-latin-america-caribbean-recent-evidence-private-sector-capabilities-trade-liberalization-foreign-direct-investment-deregulation-not-enough http://hdl.handle.net/10986/8204 |
| _version_ |
1764404708999430144 |