Trade Adjustment Costs in Developing Countries: - World Bank ...

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Standards, Trade and Developing Countries 339(2004) show that small dairy farmers gain in terms of productivity from contractproduction with large foreign milk processors. Gulati et al. (2005) provide similarevidence for smallholder animal production in Southeast Asia. Maertens and Swinnen(2009) show that contract-farming in the Senegalese horticulture export sectorleads to very high and significant increases in household income. Minten et al.(2006) show that the vegetable exports from Madagascar to the EU are completelybased on smallholder contract production, leading to more income stability forlocal households and technology spillovers on rice production.Moreover, an important—and much overlooked—argument in the welfare analysesof high-standards trade is that poor households may benefit through employmenteffects. High-standards trade creates new employment opportunities inprocessing and handling of produce, and on vertically integrated estate farmsand large contracted farms. Some recent empirical studies show that high-standardstrade creates substantial employment that is well-accessible for the poor,leading to increased rural incomes and reduced poverty rates (Maertens et al.,2008). For examples, Maertens and Swinnen (2009) estimate that local povertyreduced by 12 percentage points as a result of high-standards bean export inSenegal, mainly through employment effects.5. CONCLUSIONThe main conclusion is that increasing and tightening food standards may beboth barriers and catalysts for the participation of poor countries in internationalagricultural trade and for development in these countries. In this paper we havesummarized a series of studies and have documented arguments about why standardsare not necessarily non-tariff barriers to trade. We also argue that thewidely held belief that high-standards trade is non-inclusive and inequitable mayneed to be revised. There is substantial evidence that high-standards trade canbenefit poor countries and smallholder farmers and rural households in thosecountries.Pro-poor effects may arise because high-standards trade is also typically highvaluetrade and thus allows better returns for those who can participate. This, inturn, provides incentives for exporting companies to develop extensive (verticallycoordinated) contracting schemes with developing country producers, whichincludes technology transfer and input provisions. In addition, contracting problemsfor exporters typically lead to premia to local producers to ensure their suppliesand sufficient quality of production. Rural households in developingcountries may benefit either as smallholder contract farmers or through the labormarket because of enhanced wages and employment opportunities in rural areas.Johan Swinnen is Professor in the Department of Economics and Director ofLICOS – Centre for Institutions and Economic Performance, K.U.Leuven.Miet Maertens is Assistant Professor in the Department of Earth and EnvironmentalSciences, K.U.Leuven.
340Miet Maertens and Jo SwinnenBIBLIOGRAPHYAloui, O. and L. Kenny (2005). The Cost of Compliance with SPS Standards for MoroccanExports: A case study. Agricultural and Rural Development Discussion Paper, WashingtonDC: The World BankAsfaw, S., D. Mithoefer and H. Waibel (2007). What Impact are EU Supermarket StandardsHaving on Developing Countries’ Export of High-value Horticulture Products? Evidencefrom Kenya. 105th Seminar of the European Association of AgriculturalEconomists, Bologna, March 8–10, 2007Augier, P, M. Gasiorek and C. Lai Tong (2005). “The Impact of Rules of Origin on TradeFlows”, Economic Policy 20, no. 43: 567–623Bhagwati, J. and T.N. Srinivasan (2002). “Trade and Poverty in the Poor Countries”, AmericanEconomic Review, 92(2), 180–83Brenton, P. and M. Manchin (2002). Making the EU Trade Agreements Work: The role of rulesof origin. CEPS working document no. 183, Brussels: Centre for European Policy StudiesCato, C.J., S.W. Otwell and A. S. Coze (2005). Nicaragua’s Shrimp Subsector: Developinga production capacity and export market during rapidly changing worldwide safety andquality regulations. Agricultural and Rural Development Discussion Paper, WashingtonDC: The World BankColen, L, M. Maertens and J.F.M. Swinnen (2009). “Foreign Direct Investment as an Enginefor Economic Growth and Human Development: A review of the arguments andempirical evidence”, Human Rights and International Legal Discourse, 3(2)Desta, M. G. (2008). “EU Sanitary Standards and Sub-Saharan African Agricultural Exports:A case study of the livestock sector in East Asia”, The Law and Development Review,vol. 1, issue 1Dolan, C. and J. Humphrey (2000). “Governance and Trade in Fresh Vegetables: The impactof UK supermarkets on the African horticulture industry”, Journal of DevelopmentStudies 37, no. 2: 147–76Dollar, D. and A. Kraay (2002). “Growth is Good for the Poor”, Journal of EconomicGrowth, 7(3), 195–225—(2004). Trade, Growth and Poverty. Economic Journal, 114 (493), 22–49Dries, L, and J.F.M Swinnen (2004). “Foreign Direct Investment, Vertical Integration and LocalSuppliers: Evidence from the Polish dairy sector”, World Development 32, no. 9: 1525–44EurepGAP (2009). http://www.eurepgap.org/Ferrantino, M. (2006). “Quantifying the Trade and Economic Effects of Non-tariff Measures”.OECD Trade Policy Working Papers, no. 28, OECD Publishing. doi:10.1787/837654407568Gibbon, P. (2003). “Value-chain Governance, Public Regulation and Entry Barriers in theGlobal Fresh Fruit and Vegetable Chain into the EU”, Development Policy Review 21,no. 5: 615–25Gulati, A, N. Minot, C. Delgado and S. Bora (2007). “Growth in High-value Agriculture inAsia and the Emergence of Vertical Links with Farmers”, In J F M Swinnen (Ed.), GlobalSupply Chains, Standards and the Poor. Oxford, CABI publishingHenson, J.S. (2006). The Role of Public and Private Standards in Regulating InternationalFood Markets. Paper presented at the IATRC Symposium. BonnHenson, S. (2009). Standards in Agricultural Trade: Some strategic considerations forAfrica. E-learning course on Food and Agricultural Trade in Africa, World Bank Institute,April 2009Henson, S. and S. Jaffee (2008). “Understanding Developing CountryStrategic Responses to the Enhancement of Food Safety Standards”, World Economy31(4): 548–68
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THE WORLD BANKTrade Adjustment Cost
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Trade Adjustment Costs in Developin
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Trade Adjustment Costsin Developing
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viiiContents10. Trade Adjustment an
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List of Tables2.1 Simulated Adjustm
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List of Figures2.1 Worker Flows 262
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PrefaceThe process of globalization
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2Bernard Hoekman and Guido Portopri
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4Bernard Hoekman and Guido Portoequ
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6Bernard Hoekman and Guido Portowou
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8Bernard Hoekman and Guido Portoass
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10Bernard Hoekman and Guido Portoco
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12Bernard Hoekman and Guido PortoJa
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14Bernard Hoekman and Guido Portoma
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18Bernard Hoekman and Guido Portoat
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20Bernard Hoekman and Guido PortoRE
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PART AADJUSTMENT COSTS
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26Carl Davidson and Steven Matusz2.
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28Carl Davidson and Steven Matuszne
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30Carl Davidson and Steven Matuszwh
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32Carl Davidson and Steven MatuszTa
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34Carl Davidson and Steven MatuszSo
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36Carl Davidson and Steven MatuszHi
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38Erhan Artuç and John McLarenof i
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40Erhan Artuç and John McLarenshoc
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42Erhan Artuç and John McLaren1.3
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44Erhan Artuç and John McLarenassu
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46Erhan Artuç and John McLarenin A
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48Erhan Artuç and John McLarenavai
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50Erhan Artuç and John McLarencomp
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52Erhan Artuç and John McLarenFigu
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4Reallocation and Adjustment in the
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Reallocation and Adjustment in the
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5Trade Reforms in Natural-Resource-
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Trade Reforms in Natural-Resource-A
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90Olivier Cadot, Laure Dutoit and M
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100Olivier Cadot, Laure Dutoit and
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7Trade Reform, Employment Allocatio
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Trade Reform, Employment Allocation
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144Gordon H HansonOn the theory sid
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146Gordon H Hansonberg et al. (2008
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148Gordon H HansonThe expansion of
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150Gordon H Hansonshares and factor
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152Gordon H HansonGoldberg, Pinelop
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9Production Offshoring andLabor Mar
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Production Offshoring and Labor Mar
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172Pravin Krishna and Mine Zeynep S
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11Trade, Child Labor, and Schooling
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Trade, Child Labor, and Schooling i
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198Gordon H Hanson3.0%2.8%2.6%2.4%2
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200Gordon H HansonTable 12.2: Share
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202Gordon H HansonWho benefits from
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204Gordon H HansonAn older and larg
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206Gordon H HansonTo date, the lite
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208Gordon H Hansontion surplus was
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210Gordon H HansonSome evidence sug
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212Gordon H HansonBIBLIOGRAPHYAcost
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214Gordon H HansonMishra, Prachi 20
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216James Harrigan• China had been
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218James Harrigan2.2 Price and quan
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220James HarriganFigure 13.1a: Pric
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222James Harrigan4. CONCLUSIONThe e
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224Beata S Javorcikices, thus benef
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226Beata S Javorcikfor plants which
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228Beata S JavorcikAs the majority
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230Beata S Javorcik5. DOES FDI LEAD
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232Beata S Javorcikthough they do n
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234Beata S Javorcik7. FUTURE RESEAR
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236Beata S JavorcikMarkusen, James
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238Chad P Bownthese theories has on
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240Chad P Bownicy changes affect th
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242Chad P Bownis, the policy-imposi
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244Chad P Bownsignificant distortio
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246Chad P Bownaccession period led
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248Chad P Bown2002-03. 16 However,
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250Chad P Bowntive adjustment impac
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PART CFACTORS THATAFFECT TRADE
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256David Hummelsative advantage for
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258David Hummelsprices shift demand
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260David HummelsThe second form of
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262David Hummelsdogenous to how pro
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17The Duration of Trade Relationshi
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The Duration of Trade Relationships
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18Openness and Export Dynamics:New
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Openness and Export Dynamics: New r
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Openness and Export Dynamics: New r
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Page 379 and 380: 362Johan F M Swinnen and Kristine V
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