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

Posted: 13 Oct 2015

See all articles by Yothin Jinjarak

Yothin Jinjarak

University of London - SOAS - Department of Financial and Management Studies

Gonzalo Salinas

International Monetary Fund (IMF)

Yvonne Tsikata

World Bank

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 the medium to long run. In comparison to a pre-reform period and to the non-recipient group, the recipient countries registered 0.2 percent higher growth of real GDP per capita, 5.0 percent higher import growth, and 2.5 percent higher export growth over a period of three to five years after trade reform.

Keywords: International financial institutions, Trade reform, Sample selection

JEL Classification: E02, F13, O24

Suggested Citation

Jinjarak, Yothin and Salinas, Gonzalo E. and Tsikata, Yvonne, The Effect of World Bank Trade Adjustment Assistance on Trade and Growth, 1987-2004: Is the Glass Half Full or Half Empty?. Economic Systems, Vol. 37, No. 3, 2013, Available at SSRN: https://ssrn.com/abstract=2673545

Yothin Jinjarak (Contact Author)

University of London - SOAS - Department of Financial and Management Studies ( email )

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Gonzalo E. Salinas

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Yvonne Tsikata

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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