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Estimating the Constraints to Agricultural Trade of Developing Countries

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  • Evdokia Moïsé
  • Claire Delpeuch
  • Silvia Sorescu
  • Novella Bottini
  • Arthur Foch

Abstract

Agricultural trade is widely considered as an important contributor to developing countries‘ economic growth, poverty alleviation and food security. This report identifies and analyses some of the most important supply-side constraints to developing countries‘ exports of agricultural products, in order to inform prioritisation and sequencing of domestic policy reforms as well as targeting of donor interventions. The analysis is supplemented by case studies of Aid for Trade programmes supporting agricultural trade expansion in Indonesia, Zambia and Mozambique. The report confirms that developing countries‘ agricultural exports are highly responsive to the quality of transport and trade-related infrastructure, while tariffs still have a significant negative impact. The analysis also highlights the importance of complementary policies such as education and political stability on developing countries‘ agricultural trade performance. In the poorest countries of the sample, significant trade expansion could be achieved by easing constraints related to governance and infrastructure quality, as well as by lifting constraints related to the efficient use of existing freshwater resources. The case studies illustrate the impact on agricultural exports of constraints related to standards and conformity assessment or access to credit, in particular as regards small and medium agricultural producers, processors and traders. They also show the contribution of donor supported programmes promoting private sector initiatives to poverty reduction through increased employment and the promotion of production adapted to local endowments.

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File URL: http://dx.doi.org/10.1787/5k4c9kwfdx8r-en
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Trade Policy Papers with number 142.

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Date of creation: 31 Jan 2013
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Handle: RePEc:oec:traaab:142-en

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Keywords: developing countries; agricultural trade; aid for trade; food security; binding constraints; poverty reduction; trade expansion;

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