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Market Access, Transparency and Fairness in Global Trade

Export Impact for Good

image of Market Access, Transparency and Fairness in Global Trade

This new Report concludes that market access begins at home. It argues that further reducing barriers to trade between developing countries needs to be an essential part of the way forward. The report is the first of an annual series on market access issues and focuses on reducing global poverty by improving market entry and trade transparency for developing countries. In this Report, a new methodology was applied, offering more accurate estimates of global poverty distribution and the impact of export growth on poverty.

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The trade vulnerability of emerging and developing countries

Economic vulnerability arises when a country is prone to a sudden and prolonged break in its growth pattern (crisis); this needs to be distinguished from the mere notion of economic shock. It is important to ascertain whether some trigger points (such as large account deficits) are merely precursor signs of shocks or whether they announce a crisis. Most countries do indeed experience major shocks -to their terms of trade for example - but not all shocks materialize in a crisis. However, it is important to note that dependence and interdependence do not equate with economic vulnerability. Trade linkages per se do not render the trading countries more vulnerable. It is argued in this section that it is the type of trade structure (or export structure) that makes a country vulnerable rather than its mere openness through trade.

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