Succeeding with Trade Reforms - The Role of Aid for Trade

Abstract

This book looks at four main questions relevant to the discussion of implementation and effectiveness of aid for trade.

• How severe are the various possible constraints to trade expansion? • How different are the constraints to imports from the constraints to exports? • What impact would addressing these constraints have on trade and on economic growth? • To what extent would the answer to the three previous questions differ for landlocked countries, small and vulnerable economies, and commodity exporters?

An econometric analysis, supplemented by case studies, is needed to answer these questions. In the present study, such an analysis has been undertaken for as many partner countries as possible. The results can be used as a benchmark against which groupings of countries with particular characteristics can be assessed (landlocked countries, commodity exporters, and small and vulnerable economies), showing that the constraints differ considerably according to country characteristics.

Keywords: aid for trade, trade policy, trade and growth, landlocked countries, commodity exporters, small and vulnerable economies

JEL Classification: F13, F14, F15, N7, O19