OECD Trade Policy Papers

1816-6873 (online)
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This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.


Estimating the Constraints to Trade of Developing Countries You or your institution have access to this content

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Jean-Jacques Hallaert1, Ricardo Cavazos Cepeda1, Gimin Kang1
Author Affiliations
  • 1: OECD, France

24 June 2011
Bibliographic information

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The severity of binding constraints to trade expansion in developing countries and the importance of the complementary policies that will maximize the impact of trade reforms on trade and economic growth are identified and quantified in this report. As trade-related needs of developing countries are numerous, such quantification is needed to identify the most binding constraints to guide the sequencing of reforms and aid-for-trade interventions. The constraints to trade expansion are largely country specific. However, countries which share important characteristics may face similar binding constraints. An econometric analysis is undertaken for as many partner countries as possible to produce an �\unrestricted sample. that can be used as a benchmark against which special country groupings can be assessed. The econometric work relies on experimentation to identify and rank (based on their relative severity) the most binding constraints for each country grouping. Two case studies, on Azerbaijan and Uganda, illustrate the mechanisms of the econometric work and the importance of several variables not captured because of data limitations
trade expansion, small and vulnerable economies, binding constraints, developing countries trade, landlocked countries, resource rich countries, aid for trade, taxonomy of constraints
JEL Classification:
  • F1: International Economics / Trade
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