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knowledge. learning. Operations. Tools for Export Competitiveness: Policies and Institutions for Overcoming Government and Market Failures http://c ompetitiveness Mallika Shakya Economist International Trade Department. Contact: [email protected] International Trade Department.

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Contact expcom worldbank international trade department

knowledge

learning

Operations

Tools for Export Competitiveness:

Policies and Institutions for

Overcoming Government and Market Failures

http://competitiveness

Mallika Shakya

Economist

International Trade Department

Contact:

[email protected]

International Trade Department


Contact expcom worldbank international trade department

Incentive Framework

The necessary macro and trade policy

Conditions for trade growth

Hard and Soft Infrastructure

Improving the business enabling

environment and Infrastructure for exports

  • Overcoming market/govt failures

    • To achieve: Innovation, technology, quality, standards

    • Global value chain and linkages

    • Industrial zones and clusters

    • Export and Investment promotion

A Conceptual Framework on Export Competitiveness


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learning

Operations

DTISs - Precursor Work on Export Competitiveness

  • About 40 DTIS completed so far

  • Focus on impediments to export growth in LICs

  • Main findings:

    • trade policy reforms important, but not sufficient

    • trade logistics, infrastructure, backbone services

    • proactive policies and measures to overcome the

    • government and market failures

Contact:

[email protected]

International Trade Department


Contact expcom worldbank international trade department

  • WHY do government/market failures arise?

  • costs of discovery

  • asymmetric information

  • coordination externalities

  • lack of supporting services for industry

  • missing public inputs

  • Note: these will vary for low-, middle-, and high-income countries


Contact expcom worldbank international trade department

knowledge

learning

Operations

Contact:

[email protected]

International Trade Department


Contact expcom worldbank international trade department

knowledge

learning

Operations

Different types of institutions for a collaborative process

Public sector

Private sector

line ministries

business associations

lawyers

business registrar

export promotion

arbitrators

training institutes

investment promotion

business service providers

standards and certification

universities

market research agencies

innovation and technology foundations

IPRs

R&D

industrial zones

EXAMPLES

Fundacion Chile

Chinese special economic zones

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Role of private sector:

  • Assess actual risks and take action

  • Provide relevant info about obstacles and opportunities

  • Lubricate machineries on the ground to deal with the informal constraints

Operations

Institutional incrementalism

Role of government:

  • Set policies

  • Internalize the externalities associated with cost-discovery process

  • Provide public inputs (infrastructure and backbone services, property rights, harmonization of standards)

formal institutions

business assoc.,

parastatals, research

institutions

informal institutions

trust, traditional know-how, social capital

search engines

little is known ex-ante

about instruments; emphasize more on current successes (large buyers, diaspora ventures) to

develop broader

corrective measures

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International Trade Department


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Overcoming barriers to export competitiveness:

Methodologies are diverse but complementary

1. industry-specific approach for identifying constraints

2. micro-foundations or clusters approach


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Operations

1. INDUSTRY-SPECIFIC ANALYSES TO IDENTIFY CONSTRAINTS

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Operations

INDUSTRY-SPECIFIC ANALYSES TO IDENTIFY CONSTRAINTS - 1

‘Picking Winners’ vs. working from revealed comparative advantage

Source: UN Comtrade Database and FIAS analysis

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Operations

INDUSTRY-SPECIFIC ANALYSES TO IDENTIFY CONSTRAINTS - 2

Key findings from MGI’s sector-specific analyses

Source: MGI India Study

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Operations

INDUSTRY-SPECIFIC ANALYSES TO IDENTIFY CONSTRAINTS - 3

Methodology and information sources for industry-specific analysis

Source: Palmade (2005)

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Operations

INDUSTRY-SPECIFIC ANALYSES TO IDENTIFY CONSTRAINTS - 4

Big differences in relative sector differences in India

Productivity, U.S. = 100

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Operations

INDUSTRY-SPECIFIC ANALYSES TO IDENTIFY CONSTRAINTS - 5

Mozambique Case Study: Policy and institutional measures

Apparel

Industry

  • Education/workforce trg

  • Labor law reform

  • Specialized infrastructure

  • Licensing reform

  • Specialized business services

  • Tax simplifications

  • Investment/export promotion

  • Develop a critical mass of firms for the changes to take place

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Figure 2.1: Hourly wages in apparel assembly

(US cents)

Ethiopia

14

Ghana

18

knowledge

Bangladesh

21

learning

Mozambique++

25

Pakistan

26

Operations

Madagascar

26

India

27

Kenya

30

Nepal

31

Swaziland

33

Sri Lanka

35

Lesotho

46

EPZ China

72

Mauritius

125

S Africa

179.4

INDUSTRY-SPECIFIC ANALYSES TO IDENTIFY CONSTRAINTS - 6

Mozambique: Apparel Labor Wages and Productivity

(Competitiveness = productivity/costs)

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Operations

INDUSTRY-SPECIFIC ANALYSES TO IDENTIFY CONSTRAINTS - 7

Regional Competitiveness of the Mozambican Apparels

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Operations

INDUSTRY-SPECIFIC ANALYSES TO IDENTIFY CONSTRAINTS - 8

Mozambique: Policy Implications for Apparels

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Operations

2. MICRO-FOUNDATIONS OR CLUSTERS APPROACH

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Operations

MICRO-FOUNDATIONS OR CLUSTERS APPROACH - 1

Contact:

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International Trade Department


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Operations

MICRO-FOUNDATIONS OR CLUSTERS APPROACH - 2

Contact:

[email protected]

International Trade Department


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Operations

MICRO-FOUNDATIONS OR CLUSTERS APPROACH - 3

Contact:

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International Trade Department


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Operations

MICRO-FOUNDATIONS OR CLUSTERS APPROACH - 4

Contact:

[email protected]

International Trade Department


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Operations

MICRO-FOUNDATIONS OR CLUSTERS APPROACH - 5

Contact:

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International Trade Department


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Operations

MICRO-FOUNDATIONS OR CLUSTERS APPROACH - 6

Contact:

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International Trade Department


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Operations

MICRO-FOUNDATIONS OR CLUSTERS APPROACH - 7

Contact:

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Tour Operators

Luang Prabang

Vientiane

Abroad

Local Healthcare

Lao Traditional Massage

Spa Services

Hospitals

Tour Guides /

Interpreters

Operations

Local retail,

health care, and

Media / Information

Travel Press

Television, Radio

Internet

Public Relations &

other services

Market Research

Services

Local Transportation

Taxies / Tuk-tuks

Local buses

Charter Services

River Boats

Wats

Museums

Caves

Waterfall

Activities

Local

Transportation

Restaurants

Specialty Food

Suppliers

Food

Suppliers

Shopping

Retail Stores

Night markets

Handicraft Shops

Duty Free

Souvenirs,

Tourists

Duty Free

Communications

Providers

Internet

Phone

Property

Airlines,

Airlines

Airport

Buses

River Cruises

Services

Hotels

Guest Houses

Homestays

Villages

Financial Services

Banks

Foreign Exchange

ATMs

Hotels

Domestic

Banks,

Foreign

Exchange

Infrastructure

Maintenance

Utilities

Maintenance

Services

Government agencies

NTA

Tourism Police

Local Tourism Office

Immigration Services

Customs

International Agencies

Asian Development Bank, SNV, UNESCO

World Bank

Industry Groups

LATA

Hotel and Restaurant Assoc

Heritage Committee

Education

National University (Vientn)

Lng Prbg Tourism School

Industry Groups

e.g. Universities,

e.g. Tourism

MICRO-FOUNDATIONS OR CLUSTERS APPROACH - 8

Luang Prabang Tourism Cluster

Source:Lao PDR Export Competitiveness Report, World Bank, 2005. JAA Analysis.

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Operations

MICRO-FOUNDATIONS OR CLUSTERS APPROACH - 9

Source:Lao PDR Export Competitiveness Report, World Bank, 2005. JAA Analysis.

Contact:

[email protected]

International Trade Department


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