The Effect of World Bank Trade Adjustment Assistance on Trade and Growth, 1987-2004: Is the Glass Half Full or Half Empty?

Posted: 13 Oct 2015

See all articles by Yothin Jinjarak

Yothin Jinjarak

Victoria University of Wellington - School of Economics & Finance

Gonzalo Salinas

International Monetary Fund (IMF)

Yvonne Tsikata

World Bank

Abstract

This paper studies the association between trade reform, growth, and trade adjustment assistance in a sample of developing countries that underwent trade reforms during 1987-2004. Our analysis explicitly differentiates between a group of countries that received trade adjustment loans from the World Bank and a non-recipient group. The results suggest that trade adjustment assistance is positively associated with economic growth after trade reform in the medium to long run. In comparison to a pre-reform period and to the non-recipient group, the recipient countries registered 0.2 percent higher growth of real GDP per capita, 5.0 percent higher import growth, and 2.5 percent higher export growth over a period of three to five years after trade reform.

Keywords: International financial institutions, Trade reform, Sample selection

JEL Classification: E02, F13, O24

Suggested Citation

Jinjarak, Yothin and Salinas, Gonzalo E. and Tsikata, Yvonne, The Effect of World Bank Trade Adjustment Assistance on Trade and Growth, 1987-2004: Is the Glass Half Full or Half Empty?. Economic Systems, Vol. 37, No. 3, 2013, Available at SSRN: https://ssrn.com/abstract=2673545

Yothin Jinjarak (Contact Author)

Victoria University of Wellington - School of Economics & Finance ( email )

P.O. Box 600
Wellington 6001
New Zealand

Gonzalo E. Salinas

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Yvonne Tsikata

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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