Strengthening Bolivian Competitiveness

The World Bank

Description

The government of Bolivia seeks to reinvigorate the nontraditional export sector as part of its national development strategy. This Country Study investigates the role that trade should play in Bolivia's development strategy, given the country's rich resource endowment, and examines the lessons of Bolivia's integration into the global economy. Considering the past links between trade and Bolivia's economy, the study analyzes the impact of different scenarios on growth, employment, trade flows, and poverty; it also evaluates barriers to higher export competitiveness and constraints on exporting firms. The study concludes that preferential access to world markets is necessary but not sufficient for success in nontraditional exports. Efficient services are necessary to reduce exporters' costs, and the government should be more proactive in laying the foundation for export diversification, increasing the effectiveness of institutions, and addressing impediments to crossborder trade.

Sujets

• Productivity
• Bolivia
• Fishery Resources Monitoring System
• Formality
• Gender
• Entrepreneur
• Private sector development

Informations

• Publié par: world-bank-publications
• Publié le: 20 juillet 2009
• Nombre de lectures: 18
• EAN13: 9780821380222
• Langue: English
• Poids de l'ouvrage: 3 Mo

Extrait

A WORLD BANK COUNTRY STUDY
Strengthening Bolivian
Competitiveness
Export Diversification and Inclusive Growth
A WORLD BANK COUNTRY STUDY
Strengthening Bolivian
Competitiveness
Export Diversification and
Inclusive Growth



























Copyright © 2009
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First Printing: June 2009
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ISBN-13: 978-0-8213-8021-5
eISBN: 978-0-8213-8022-2
ISSN: 0253-2123 DOI: 10.1596/978-0-8213-8021-5

Library of Congress Cataloging-in-Publication Data has been requested.
Contents
Preface ..................................................................................................................................... viii
Acknowledgments ...................................................................................................................ix
Abbreviations and Acronyms ................................................................................................. x
Executive Summary.................................................................................................................xii
Main Findings ...................................................................................................................xii
Policy Implications ...........................................................................................................xv
Notes.................................................................................................................................xvii
1. The Role of Trade in Bolivia’s Development Strategy................................................... 1
The Structure of the Economy: Value Added, Trade, and Employment..................... 1
Trade, Macroeconomic, and FDI Policies since the 1985 Liberalization...................... 7
Diversification and the Optimal Export Strategy for Bolivia...................................... 20
Conclusion ......................................................................................................................... 22
Notes......... 22
Annex 1.1. Restrictiveness of Bolivia’s Trade Policy.................................................... 24
2. Bolivia’s Integration into the World Economy .............................................................. 27
The Concentration of Exports and Potential for Diversification ................................ 27
Does Bolivia Trade Less than Other Countries Do?..................................................... 33
Conclusion.... 35
Notes................................................................................................................................... 38
Annex 2.1. Tests of Links between Exports and GDP Performance........................... 39
Annex 2.2. CGE Models ................................................................................................... 43
Annex 2.3. Partial Equilibrium Analysis of ATPDEA Preferences ............................ 49
Annex 2.4. Impact on Employment Using Partial Equilibrium Analysis.................. 58
Annex 2.5. Effects on Poverty.......................................................................................... 60
Annex Notes ...................................................................................................................... 65
3. Linkages between Trade and the Economy.................................................................... 67
Linkages between Trade, Growth, and Employment in the Past............................... 67
Notes................................................................................................................................... 90
Annex 3.1. Transports and Logistics .............................................................................. 94
Annex Note........................................................................................................................ 95
4. Export Competitiveness and Transport Logistics.......................................................... 96
Export Competitiveness in Bolivia ................................................................................. 96
Transport and Logistics.................................................................................................. 106
Notes................................................................................................................................. 121
iii iv Contents
5. A Firm-Level Analysis of the Factors Affecting Export Performance...................... 123
Is There a ‘Productivity Premium’ for Bolivian Exporters? ...................................... 123
What Factors Affect Exporters? .................................................................................... 128
What Factors Affect the Decision to Export? Estimating the Propensity to
Export........................................................................................................................ 131
Policy Implications ......................................................................................................... 135
Notes................................................................................................................................. 137
References............................................................................................................................... 138

Tables
Table 1.1. Share of Value Added by Sector (Percent) ........................................................... 1
Table 1.2. Value Added and Labor Share in Selected Economic Sectors (Percent)........... 3
Table 1.3. Key Policy Mechanisms of Bolivian Integration.................................................. 8
Table 1.4. Value and Utilization of EU and U.S. Preferences for Selected Exporters....... 9
Table 1.5. Utilization Rate, ATPA/ATPDEA, 1997–2005 ...................................................... 9
Table 1.A.1. Import Tariffs Applied by Bolivia (Percent) 24
Table 1.A.2. Tariffs that Bolivian Exporters Face Abroad (Percent) ................................. 25
Table 1.A.3. Trade Taxes that Bolivia’s Exports Face Abroad (Percent) .......................... 26
Table 2.1. Bolivia’s Main Export Markets (2007 and 1998) ................................................ 28
Table 2.2. New Products, Observed and Predicted Values: Bolivia vs. Other LAC
Countries........................................................................................................................... 32
Table 2.3. New Products, by Rauch Categories: Bolivia vs. Other LAC Countries........ 33
Table 2.A.1. Contribution of Different Demand Components to Real GDP Growth
in Bolivia ........................................................................................................................... 39
Table 2.A.2. Results of Unit Root Tests of Real Expo