Aid for Trade, Infrastructure, and the Growth Effects of Trade Reform : Issues and Implications for Caribbean Countries

Moreira, Emmanuel Pinto

关键词: ADVERSE DEMAND;    ADVERSE EFFECT;    ADVERSE EFFECTS;    AGRICULTURE;    AVERAGE TARIFF;   

DOI  :  10.1596/1813-9450-5265
RP-ID  :  WPS5265

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines how aid-for-tradeprograms can help to magnify the growth benefits thatdeveloping countries can reap from trade reform and globalintegration, with a special emphasis on the Caribbeanregion. The first part discusses various rationales fortrade-related aid, viewed both as a compensatory scheme(aimed at cushioning the impact of revenue cuts andadjustment costs) and a promotion scheme (aimed atalleviating supply-side constraints). In the latter case,particular attention is paid to the role of infrastructureas a constraining factor on trade expansion. The second partdiscusses the relevance of aid-for-trade arguments forCaribbean countries and identifies a number of specificissues for the region. The third part illustrates thepotential growth effects of aid-for-trade programs withsimulation results for the Dominican Republic -- a countrywhere infrastructure indicators remain relatively weak. Theresults illustrate the potentially large growth benefitsthat a temporary and well-targeted aid-for-trade program canprovide to countries of the region.