The Effect of World Bank Trade Adjustment Assistance on Trade and Growth: 1987-2004, Is the Glass Half Full of Half Empty?

Jinjarak, Yothin; Salinas, Gonzalo; Tsikata, Yvonne M.

Abstract

This paper studies the association between trade reform, growth, and trade adjustment assistance, in a sample of developing countries that underwent trade reforms during 1987-2004. Our analysis explicitly differentiates between a group of countries that received trade-adjustment loans from the World Bank, and a non-recipient group. The results suggest that trade adjustment assistance is positively associated with economic growth after trade reform in a medium- to long-run. Comparing to a pre-reform period and to the non-recipient group, the recipient countries registered 0.2 percent higher growth of real GDP/capita, 5.0 percent higher import growth, and 2.5 percent higher export growth during a period of three to five years after trade reform.

Citation

Jinjarak, Y., Salinas, G., & Tsikata, Y. M. (2013). The Effect of World Bank Trade Adjustment Assistance on Trade and Growth: 1987-2004, Is the Glass Half Full of Half Empty?. Economic Systems, 37, 415-430. https://doi.org/10.1016/j.ecosys.2013.05.004

• Journal Article Type: Article
• Publication Date: Sep 12, 2013
• Deposit Date: May 7, 2013
• Publicly Available Date: Mar 12, 2025
• Journal: Economic Systems
• Print ISSN: 0939-3625
• Electronic ISSN: 1878-5433
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 37
• Pages: 415-430
• DOI: https://doi.org/10.1016/j.ecosys.2013.05.004