Presentation on theme: "1 Promoting Efficiency in Services Raed Safadi, OECD OECD Global Forum on Trade: A trade policy dialogue on the multiple dimensions of market access and."— Presentation transcript:
1 Promoting Efficiency in Services Raed Safadi, OECD OECD Global Forum on Trade: A trade policy dialogue on the multiple dimensions of market access and development Mexico City, 23-24 October 2006
2 Impact of services barriers on effective rates of protection (ERP) in agriculture and manufacturing Time as a Trade Barrier
5 Time as a trade barrier: Motivation DevelopingLDC EU150.8%0.02% USA0.7%0.1% Japan0.3%0.1% Tariffs facing developing countries in manufacturing Source: MacMap Source: WTO
6 Are the main trade barriers behind the border? JIT Lean retailing Offshoring Supply chain management Containerization Speed and scale in trade Time for exports (days) Time for imports (days) High-income12.614 East Asia25.828.6 South Asia33.746.5 Europe & Central Asia 31.643 Latin America30.337 Middle East & North Africa 33.641.9 Sub-Saharan Africa 48.660.5 Source: World Bank
8 Empirical analysis Sectors: –Total merchandise (benchmark) –Intermediate industrial products –Electronics –Fashion clothing Countries: –Importers: Australia, Japan, UK –Exporters: All countries Key variables of interest: –Time for exports –Control of corruption Model: Gravity model
10 The impact on exports of a 10% improvement in the control of corruption index
11 Time and export volumes % increase in exports following 10% reduction in time for exports
12 Policy implications - preliminaries Excessive time for exports and imports constitutes an export market entry barrier for entrepreneurs in low-income countries – and a disincentive to invest in product quality; Time for exports and imports depends on a logistics chain including testing, freight forwarding, transport, port services, customs services, inventory management, tracking… The activities in the logistics chain are complementary It is time relative to competitors – not absolute time that matters
13 Policy implications cont. Identify and focus reform on bottlenecks in the logistics chain; Logistics and the DDA: –Trade facilitation –GATS liberalisation of transport, communication, logistics and business services; –Aid for trade Well-designed special economic zones can be a first step when investment needed for adequate country-wide infrastructure is beyond the (aid-augmented) resources of the country in the short term. Reforms are urgently needed!
Your consent to our cookies if you continue to use this website.