Trade Policies, Investment Climate, and Exports across Countries
There is a large body of research that explores international trade as a source of the dispersion in income levels and growth performances across countries. The trade liberalization policies undertaken between 1950 and 2006 led to an almost 30 fold...
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| 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_20110509085841 http://hdl.handle.net/10986/3415 |
| Summary: | There is a large body of research that
explores international trade as a source of the dispersion
in income levels and growth performances across countries.
The trade liberalization policies undertaken between 1950
and 2006 led to an almost 30 fold growth in the volume of
international trade. However this increase has not been
homogeneous across countries. This study investigates a
possible reason that prevents convergence of countries in
export performance. It shows that regulatory quality,
customs efficiency, quality of infrastructure, and access to
finance among other factors increase export performance.
Furthermore, it shows that countries that are relatively
more constrained in accessing to foreign markets benefit
more from improvements in investment climate than the
countries with easier foreign market access. Hence obtaining
a favorable investment climate for private sector
development should be an important policy objective for
relatively closed economies to achieve convergence in export
volumes with countries that have more liberal trade policies. |
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