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The Impact of Trade Facilitation Mechanisms on Export Competitiveness. ?The results suggest that both imports and exports for a country and for the world will increase with improvements in ?trade facilitation measures." (Wilson et al., 2005; abstract)?Competitiveness is a largely meaningless concep
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1. The Impact of Trade Facilitation Mechanisms on Export Competitiveness
Malcolm D. Spence
Stephen N. Karingi
Regional Integration, Infrastructure and Trade Division
Economic Commission for Africa Hello, do my notes show up on print preview
Hello, do my notes show up on print preview
2. The Impact of Trade Facilitation Mechanisms on Export Competitiveness The results suggest that both imports and exports for a country and for the world will increase with improvements in
trade facilitation measures. (Wilson et al., 2005; abstract)
Competitiveness is a largely meaningless concept. (Krugman, 1991; p.41)
Economists, in general, do not use the word competitiveness (Krugman, 1996; p.24)
1. Three ways of thinking about export competitiveness:
Market share
Productivity and the foundations of competitiveness
(New) export competitiveness
2. Introducing Trade Facilitation
3. Trade Facilitation and Export Competitiveness: Conceptual Framework and Empirical Results
4. Conclusions an Recommendations
1. Three ways of thinking about export competitiveness:
Market share
Productivity and the foundations of competitiveness
(New) export competitiveness
2. Introducing Trade Facilitation
3. Trade Facilitation and Export Competitiveness: Conceptual Framework and Empirical Results
4. Conclusions an Recommendations
3. Export Competitiveness as Market Share The most intuitive definition of competitiveness is a countrys share of world markets for its products. This makes competitiveness a zero-sum game, because one countrys gain comes at the expense of others. (Porter et al., 2008; p.2)
4. Export Competitiveness as Market Share:Africas Share of World Merchandise Trade
5. Export Competitiveness as Market Share: Constant Market Share Analysis
6. Export Competitiveness as Market Share:Constant Market Share Analysis Potentially in conflict with rising standards of living
Potentially derived from unsustainable price effects rather than real phenomena
Overstates the conflict dimension success of one country doesnt necessary disadvantage another
Overstates export competition as a source of prosperity
Potentially in conflict with rising standards of living
Potentially derived from unsustainable price effects rather than real phenomena
Overstates the conflict dimension success of one country doesnt necessary disadvantage another
Overstates export competition as a source of prosperity
7. Productivity and the Foundations of Competitiveness:The Twelve Pillars of the GCI
8. Productivity and the Foundations of Competitiveness:The Twelve Pillars of the GCI
9. Productivity and the Foundations of Competitiveness
10. Productivity and the Foundations of Competitiveness
11. (New) Export Competitiveness Hausmann, Hwang and Rodrik (2007) what you export matters
12. (New) Export Competitiveness
13. (New) Export Competitiveness
14. Introducing Trade Facilitation World Bank Thematic Group on Export Competitiveness:
The incentive framework resources must be allocated to firms that have the capacity to compete internationally in the long run, and the most productive firms.
Reducing trade related costs this includes physical infrastructure and complementary services related to trade, as well as polices related to the supply of capable workers.
Overcoming market and government failures a holistic approach to mitigate weak capacity through building institutional quality in areas such as export promotion, innovation, and transparency of government procedure.
15. Introducing Trade Facilitation World Bank Thematic Group on Export Competitiveness:
The incentive framework resources must be allocated to firms that have the capacity to compete internationally in the long run, and the most productive firms.
Reducing trade related costs this includes physical infrastructure and complementary services related to trade, as well as polices related to the supply of capable workers.
Overcoming market and government failures a holistic approach to mitigate weak capacity through building institutional quality in areas such as export promotion, innovation, and transparency of government procedure.
16. Trade Facilitation and Export Competitiveness
17. Introducing Trade Facilitation Transaction effect arising from lower transaction costs
Production effect arising from the redistribution of resources toward more productive activities
Exports tend to benefit more than imports
Extensive expansion outweighs intensive expansion
18. Trade Facilitation and Export Competitiveness Regress TFP and EXPY on 4 indicators of trade facilitation from Portugal-Perez and Wilson(2010):
INF, physical infrastructure
ICT, information and communications technology
BORDER, border efficiency
BUS, business environment
Small sample size (21x4 and 17x4) inhibits panel stationary tests, and power of fixed/random effects specifications
Multicollinearity between trade facilitation indicators and control variables
White test confirms heteroskedasticity, justifying use of EGLS
19. Trade Facilitation and TFP: Model Estimates
20. Trade Facilitation and EXPY: Model Estimates
21. Conclusions and Recommendations Trade Facilitation can bolster total factor productivity
Hard Infrastructure is the most significant
Pervasive transaction effect
Weaker impact on EXPY
Physical infrastructure still significant
Less prominent production effect
Openness and market size variables positively significant
Gains from regional integration
Focused only on certain dimensions of export competitiveness
Trade Facilitation Data limitations
No examination of country effects
CMSA and EXPY better facilitate the identification of strategic interventions
Focused only on certain dimensions of export competitiveness
Trade Facilitation Data limitations
No examination of country effects
CMSA and EXPY better facilitate the identification of strategic interventions
22. Thank you for your kind attention.
Comments and suggestions to mspence@uneca.org
and
skaringi@uneca.org