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The Impact of Pro-Competitive Reforms on Trade in Developing Countries

Author

Listed:
  • Sébastien Miroudot
  • Enrico Pinali
  • Nicolas Sauter

Abstract

This report proposes an analysis of the mutually reinforcing relationship between trade, investment and competition policies and how together they impact trade in developing countries. An index of pro-competitive reforms is provided for 82 countries over the period 2001-2005. The index synthesises 13 indicators of the policy stance of countries with regard to trade, investment and competition. It is then used in quantitative analysis to determine the impact of barriers to competitive markets on trade. The results shows that there are substantial gains for developing countries in market and regulatory reforms in terms of higher trade flows and higher income per capita. Moreover, the paper further examines pro-competitive reforms in key services sectors and the extent to which trade agreements can promote them through the experience of the WTO telecoms Reference Paper. The analysis highlights that countries achieved a high degree of liberalisation in the telecoms sector and that regulatory principles of the Reference Paper were useful in promoting sound policies under domestic regulatory reforms of the sector.

Suggested Citation

  • Sébastien Miroudot & Enrico Pinali & Nicolas Sauter, 2007. "The Impact of Pro-Competitive Reforms on Trade in Developing Countries," OECD Trade Policy Papers 54, OECD Publishing.
  • Handle: RePEc:oec:traaab:54-en
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    File URL: http://dx.doi.org/10.1787/147131508107
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    References listed on IDEAS

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    Cited by:

    1. Martin Melecky & Evgenij Najdov, 2010. "Comparing constraints to economic stabilization in Macedonia and Slovakia: macroestimates with micronarratives," Applied Financial Economics, Taylor & Francis Journals, pages 681-699.
    2. Martin Melecky & Evgenij Najdov, 2010. "Comparing constraints to economic stabilization in Macedonia and Slovakia: macroestimates with micronarratives," Applied Financial Economics, Taylor & Francis Journals, pages 681-699.
    3. Radovan Kovačević, 2009. "The Structural Characteristics Of World Trade And The Merchandise Exports Of Serbia," Economic Annals, Faculty of Economics, University of Belgrade, vol. 54(181), pages 55-92, April – J.
    4. World Bank, 2009. "Macedonia - Moving to Faster and More Inclusive Growth A Country Economic Memorandum : Main Report and Annex," World Bank Other Operational Studies 3067, The World Bank.

    More about this item

    Keywords

    gains; gravity; indicators; pro-competitive reforms; reference paper; regulatory reforms; telecommunications; telecoms; trade and competition; trade and investment; trade liberalisation;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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