Strengthening Bolivian Competitiveness : Export Diversification and Inclusive Growth
Bolivia's trade liberalization, launched in the mid-1980s, has resulted in a relatively open trade regime; but the results have been mixed. Bolivia's export to Gross Domestic Product (GDP) ratio and export entrepreneurship index rating are among the highest in the Latin American and Caribbean (LAC) region and the country has achieved great success in making soya the major export crop in less than 10 years. At the same time, the country's share in world trade has stagnated and exports are increasingly dominated by gas and minerals. Reinvigorating the nontraditional export sector is important for the government of Bolivia as it implements its national development plan. As a resource-rich country, the Bolivian government's emphasis on export diversification is well-placed but the optimal nontraditional export strategy should build on successes in the traditional sector. This study investigates: (a) the role trade should play in Bolivia's development strategy considering the country's natural resource endowment; (b) the lessons of Bolivia's integration to the world economy; (c) the linkages between Bolivia's past trade and economy and a forward-looking analysis of the impact of different scenarios on growth, employment, trade flows, and poverty; (d) constraints to higher export competitiveness and weaknesses related to transport and logistics; and (e) the characteristics of exporting firms and the constraints affecting them. The main findings of the analysis are that preferential access to world markets is necessary but not sufficient for success in nontraditional exports; rather, success depends largely on increasing the competitiveness of exporting firms. Second, a neutral incentive regime is essential to the growth of nontraditional exports. Third, efficient backbone services are vital for reducing exporters' costs. Finally, the government should be proactive in addressing institutional impediments to cross-border trade. The study presents prioritized policy implications of the analysis related to: (i) trade policy and preferential access to markets; (ii) the incentives regime; (iii) backbone services; (iv) increasing the effectiveness of institutions to promote cross-border trade; and (v) setting the foundations for exports diversification.
|This book is provided by The World Bank in its series World Bank Publications with number 2656 and published in 2009.|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: https://openknowledge.worldbank.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009.
"Estimating Trade Restrictiveness Indices,"
Royal Economic Society, vol. 119(534), pages 172-199, 01.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
- Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating Trade Restrictiveness Indices," CEPR Discussion Papers 5576, C.E.P.R. Discussion Papers.
- James R. Tybout, 2001. "Plant- and Firm-Level Evidence on "New" Trade Theories," NBER Working Papers 8418, National Bureau of Economic Research, Inc.
- Dawson, P.J., 2006. "The export-income relationship and trade liberalisation in Bangladesh," Journal of Policy Modeling, Elsevier, vol. 28(8), pages 889-896, November.
- Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2005. "Investment Climate and Firm Performance in Developing Economies," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 1-31, October.
- Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008.
"Estimating Trade Flows: Trading Partners and Trading Volumes,"
3228230, Harvard University Department of Economics.
- Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 441-487.
- Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007. "Estimating Trade Flows: Trading Partners and Trading Volumes," NBER Working Papers 12927, National Bureau of Economic Research, Inc.
- James E. Rauch, 1996.
"Networks versus Markets in International Trade,"
NBER Working Papers
5617, National Bureau of Economic Research, Inc.
- Joachim Wagner, 2007.
"Exports and Productivity: A Survey of the Evidence from Firm-level Data,"
The World Economy,
Wiley Blackwell, vol. 30(1), pages 60-82, 01.
- Wagner, Joachim, 2005. "Exports and Productivity : A survey of the evidence from firm level data," HWWA Discussion Papers 319, Hamburg Institute of International Economics (HWWA).
- Joachim Wagner, 2005. "Exports and Productivity: A Survey of the Evidence fro Firm Level Data," International Trade 0504005, EconWPA.
- Joachim Wagner, 2005. "Exports and Productivity: A survey of the evidence from firm level data," Working Paper Series in Economics 4, University of Lüneburg, Institute of Economics.
- Gu, Wulong & Baldwin, John R., 2003. "Participation in Export Markets and Productivity Performance in Canadian Manufacturing," Economic Analysis (EA) Research Paper Series 2003011e, Statistics Canada, Analytical Studies Branch.
- Maurizio Bussolo & Jann Lay, 2003.
"Globalisation and Poverty Changes in Colombia,"
OECD Development Centre Working Papers
226, OECD Publishing.
- Antoine Bouet & Yvan Decreux & Lionel Fontagné & Sébastien Jean & David Laborde, 2008.
"Assessing Applied Protection across the World,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Awokuse, Titus O., 2002.
"Is The Export-Lead Growth Hypothesis Valid For Canada?,"
15823, University of Delaware, Department of Food and Resource Economics.
- Titus O. Awokuse, 2003. "Is the export-led growth hypothesis valid for Canada?," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 126-136, February.
- Macario, Carla, 2000. "Export growth in Latin America: policies and performance," Copublicaciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1642 edited by Lynne Rienner Publishers, June.
- Hausman, Jerry A. & Taylor, William E., 1981.
"Panel data and unobservable individual effects,"
Journal of Econometrics,
Elsevier, vol. 16(1), pages 155-155, May.
- Titus Awokuse, 2006.
"Export-led growth and the Japanese economy: evidence from VAR and directed acyclic graphs,"
Taylor & Francis Journals, vol. 38(5), pages 593-602.
- Titus Awokuse, 2005. "Export-led growth and the Japanese economy: evidence from VAR and directed acyclic graphs," Applied Economics Letters, Taylor & Francis Journals, vol. 12(14), pages 849-858.
- Hertel, Thomas & Keeney, Roman & Ivanic, Maros & Winters, Alan, 2006.
"Distributional Effects of WTO Agricultural Reforms in Rich and Poor Countries,"
GTAP Working Papers
2185, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Thomas W. Hertel & Roman Keeney & Maros Ivanic & L. Alan Winters, 2007. "Distributional effects of WTO agricultural reforms in rich and poor countries," Economic Policy, CEPR;CES;MSH, vol. 22, pages 289-337, 04.
- Hertel, Thomas W. & Keeney, Roman & Ivanic, Maros & Winters, L. Alan, 2006. "Distributional effects of WTO agricultural reforms in rich and poor countries," Policy Research Working Paper Series 4060, The World Bank.
- Valenzuela, Ernesto & Wong, Sara & Sandri, Damiano, 2007. "Distortions to Agricultural Incentives in Ecuador," Agricultural Distortions Working Paper 48394, World Bank.
- Subrata Ghatak & Chris Milner & Utku Utkulu, 1997. "Exports, export composition and growth : cointegration and causality evidence for Malaysia," Applied Economics, Taylor & Francis Journals, vol. 29(2), pages 213-223.
- Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, November.
- Brenton, Paul & Newfarmer, Richard, 2007. "Watching more than the Discovery channel : export cycles and diversification in development," Policy Research Working Paper Series 4302, The World Bank.
- Maddala,G. S., 1986. "Limited-Dependent and Qualitative Variables in Econometrics," Cambridge Books, Cambridge University Press, number 9780521338257, December.
- Clarke, George R.G., 2005. "Beyond tariffs and quotas : why don't African manufacturers export more?," Policy Research Working Paper Series 3617, The World Bank.
- Marc J. Melitz, 2003.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,"
Econometric Society, vol. 71(6), pages 1695-1725, November.
- Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
- Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
- Alvarez, Roberto, 2004. "Sources of export success in small- and medium-sized enterprises: the impact of public programs," International Business Review, Elsevier, vol. 13(3), pages 383-400, June.
- Mohsen Bahmani-Oskooee & Maharouf Oyolola, 2007. "Export growth and output growth: An application of bounds testing approach," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 31(1), pages 1-11, March.
- Jeffrey J. Reimer, 2007. "Assessing Global Computable General Equilibrium Model Validity Using Agricultural Price Volatility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 383-397.
- Piermartini, Roberta, 2004. "The role of export taxes in the field of primary commodities," WTO Discussion Papers 4, World Trade Organization (WTO), Economic Research and Statistics Division.
- Jin-Tan Liu & Meng-Wen Tsou & James Hammitt, 1999. "Export activity and productivity: Evidence from the Taiwan electronics industry," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(4), pages 675-691, December.
- World Bank, 2005. "Bolivia : Country Economic Memorandum, Policies to Improve Growth and Employment," World Bank Other Operational Studies 8399, The World Bank.
- Love, Jim & Chandra, Ramesh, 2005. "Testing export-led growth in Bangladesh in a multivarate VAR framework," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1155-1168, January.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbpubs:2656. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Breineder)
If references are entirely missing, you can add them using this form.