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World Bank Trade Adjustment Loans and Export Policy Distortions

Author

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  • Mariarosaria Agostino

Abstract

This work investigates whether World Bank loans fostering trade liberalization are associated with less distorted export policies, by employing some gravity model-based measures of anti-export bias, and a Herfindhal index of export revenues concentration. When accounting for non-random selection in a sample of 88 developing countries over the period 1980-2000, the receipt of trade adjustment loans seems to have reduced the policy distortion under scrutiny. Such a beneficial influence, however, vanishes when a longer time horizon is considered, casting doubts on the country ownership of waves of liberalizations supported by the Bank.

Suggested Citation

  • Mariarosaria Agostino, 2007. "World Bank Trade Adjustment Loans and Export Policy Distortions," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 10(2), pages 143-162.
  • Handle: RePEc:taf:jpolrf:v:10:y:2007:i:2:p:143-162
    DOI: 10.1080/17487870701358873
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