Overview
Trade holds promise for inclusive economic growth and poverty reduction by enhancing pricing dynamics and boosting productivity. However, low-income countries face challenges such as insufficient tax revenue and tariff evasion. Trade facilitation aims to mitigate these hurdles, fostering fair competition and enhancing trade infrastructure. Despite limited evidence, interventions yield significant efficiency gains even without tariff adjustments.
The Development Impact Group's Trade program studies trade facilitation programs across diverse low-income settings to understand where and how these programs can be most effective. To push trade programs to their efficiency frontiers, the TIES seeks to identify: (i) the binding firm-level constraints to trade; and (ii) the balance of trade-offs between reducing controls and ensuring revenue collection.
Themes
Development Impact Group Trade’s work is focused on three pillars:
Elevating Trade Policy
Our research improves trade policy decisions by leveraging administrative data and creating analytical tools for real-time metrics on border performance and revenue collection. These tools are made open source for customs agencies to use globally.
Maximizing Trade Benefits
Our research enhances trade facilitation programs which have been proven to reduce barriers and promote pro-poor outcomes. We focus on understanding trade policy micro-impacts including Non-Tariff Measures, certifications, and Deep Integration. In Latin America, Development Impact Group Trade is assessing the effects of quality standards on exporters and Customs Unions on regional trade.
Optimizing Trade Facilitation
We provide evidence for effective trade facilitation in low-income countries to address pitfalls in trade policy, focusing on risk management, auditing, and compliance.
Partnerships
Development Impact Group Trade is an operational research collaboration between the Development Impact Group and World Bank sectors focused on transport, trade corridors, and border management. The partnership integrates impact evaluation specialists with ongoing World Bank projects. By leveraging data and technology, Development Impact Group Trade conducts cross-cutting evaluations to enhance evidence-based decision-making. Currently active in Southern Africa, specifically in Malawi, Mozambique, and Zambia, the partnership provides analytical support to $469 million in development financing for trade facilitation.
