Person:
Brenton, Paul
Trade and Regional Integration
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Fields of Specialization
INTERNATIONAL TRADE,
CLIMATE CHANGE,
CARBON ACCOUNTING,
TRADE POLICY
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Trade and Regional Integration
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Last updated
January 31, 2023
Biography
Paul Brenton is Lead Economist in the Trade and Regional Integration Unit of the World Bank. He focuses on analytical and operation work on trade and regional integration. He has led the implementation of World Bank lending operations such as the Great Lakes Trade Facilitation Project in DR Congo, Rwanda and Uganda. He co-authored the joint World Bank-WTO report on The Role of Trade in Ending Poverty and has managed a range of policy-oriented volumes including: De-Fragmenting Africa: Deepening Regional Trade Integration in Goods and Services; Africa can Help Feed Africa; and Carbon Footprints and Food Systems: Do Current Accounting Methodologies Disadvantage Developing Countries? Paul joined the World Bank in 2002, having previously been Senior Research Fellow and Head of the Trade Policy Unit at the Centre for European Policy Studies in Brussels. Before that, he lectured in economics at the University of Birmingham in the UK. He has a PhD in Economics from the University of East Anglia. A collection of Paul’s work has been published in the volume International Trade, Distribution and Development: Empirical Studies of Trade Policies (https://www.worldscientific.com/worldscibooks/10.1142/9172 ).
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Publication
Watching More Than the Discovery Channel : Export Cycles and Diversification in Development
(World Bank, Washington, DC, 2007-08) Brenton, Paul ; Newfarmer, RichardThis paper examines the export performance of 99 countries over 1995-2004 to understand the relative roles of export growth through "discovery" of new products and growth during post-discovery phases of the export product cycle -- acceleration and maturation -- in existing markets and expansion into new geographic markets. The authors find that expanding existing products in existing markets (growth at the intensive margin) has greater weight in export growth than diversification into new products and new geographic markets (growth at the extensive margin). Moreover, growth into new geographic markets appears to be more important than discovery of new export products in explaining export growth. Of particular importance is whether an exporting country succeeds in reaching more national markets that are already importing the product it makes. This geographic index of market penetration is a powerful explanatory variable of export performance. This suggests that governments should not focus solely or even primarily on the discovery channel, but also seek to identify and address market failures that are constraining exporters in subsequent phases of the export cycle. -
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Clothing and Export Diversification : Still a Route to Growth for Low-Income Countries?
(World Bank, Washington, DC, 2007-09) Brenton, Paul ; Hoppe, MombertCan the clothing sector be a driver of export diversification and growth for today's low-income countries as it was in the past for countries that have graduated into middle income? This paper assesses this issue taking into account key changes to the market for clothing: the emergence of India and especially China as exporting countries; the rise of global production chains; the removal of quotas from the global trading regime but the continued presence of high tariffs and substantial trade preferences; the increasing importance of large buyers in developed countries and their concerns regarding risk and reputation; and the increasing importance of time in defining sourcing decisions. To assess the importance of the factors shaping the global clothing market, the authors estimate a gravity model to explain jointly the propensity to export clothing and the magnitude of exports from developing countries to the E U and US markets. This analysis identifies the quality of governance as an important determinant of sourcing decisions and that there appears to be a general bias against sourcing apparel from African countries, which is only partially overcome by trade preferences. -
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Economic Partnership Agreements and the Export Competitiveness of Africa
(World Bank, Washington, DC, 2008-05) Brenton, Paul ; Hoppe, Mombert ; Newfarmer, RichardTrade can be a key driver of growth for African countries, as it has been for those countries, particularly in East Asia, that have experienced high and sustained rates of growth. Economic partnership agreements with the European Union could be instrumental in a competitiveness framework, but to do so they would have to be designed carefully in a way that supports integration into the global economy and is consistent with national development strategies. Interim agreements have focused on reciprocal tariff removal and less restrictive rules of origin. To be fully effective, economic partnership agreements will have to address constraints to regional integration, including both tariff and non-tariff barriers; improve trade facilitation; and define appropriate most favored nation services liberalization. At the same time, African countries will need to reduce external tariff peak barriers on a most favored nation basis to ensure that when preferences for the European Union are implemented after transitional periods, they do not lead to substantial losses from trade diversion. This entails an ambitious agenda of policy reform that must be backed up by development assistance in the form of "aid for trade." -
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The Initial and Potential Impact of Preferential Access to the U.S. Market under the African Growth and Opportunity Act
(World Bank, Washington, D.C., 2004-04) Brenton, Paul ; Ikezuki, TakakoThe ability to export clothing products under preferences with liberal rules of origin is the key factor currently determining whether the African Growth and Opportunity Act (AGOA) has a significant impact on non-oil exporting African countries. At present only a small number of countries receive substantial benefits and least developed countries that do not receive preferences for clothing have yet to see an impact of AGOA on their overall exports. However, the benefits from exporting clothing under AGOA appear fragile in the face of the removal of quotas in the United States on major suppliers, such as China, at the end of 2004, and the planned removal of the liberal rules of origin that allow for the global sourcing of fabrics from least-cost locations. To entrench and enhance the benefits of AGOA, it is important that the scheme be extended over a much longer period, if not made permanent, and the special liberal rules of origin for clothing products be extended considerably beyond 2004. The effective inclusion of textile products and a number of high-duty agricultural products would also help to broaden the range of opportunities for African exporters in the U.S. market. Nevertheless it is important that the opportunities created by AGOA are integrated into a broader framework for promoting trade and that it be recognized that if the opportunities offered by more open trade are to be exploited, there must be concerted efforts to improve the environment for investment countries covered by AGOA. -
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Women and Trade in Africa : Realizing the Potential
(World Bank, Washington, DC, 2013-01) Brenton, Paul ; Gamberoni, Elisa ; Sear, Catherine ; Brenton, Paul ; Gamberoni, Elisa ; Sear, CatherineRegional trade in Africa can play a vital role in diversifying economies and reducing dependence on the export of a few mineral products, in delivering food and energy security, in generating jobs for the increasing numbers of young people, and in alleviating poverty and promoting a shared prosperity. Women play a key role in trade in Africa and will be essential to Africa's success in exploiting its trade potential. In many countries in Africa, the majority of small farmers are women, and they produce crops such as maize, cassava, cotton, and rice that have enormous potential for increased trade between African countries and with the global market. Women are also involved in providing services across borders, such as education, health, and professional services, including accountancy and legal services. Hundreds of thousands of women cross borders in Africa every day to deliver goods from areas where they are relatively cheap to areas in which they are in shorter supply. Yet, policy makers typically overlook women's contribution to trade and the challenges they face. This volume brings together a series of chapters that look at the ways that women participate in trade in Africa, the constraints they face, and the impact of those constraints. It seeks to extend the rather small amount of analytical work that has been devoted to this issue and to encourage researchers, especially in Africa, to look more carefully at the specific challenges women face. The chapters look at the conditions and challenges faced by three broad groups: informal cross border traders; women who participate in the production of traded goods and services, ranging from rural farmers of cotton to professional activities such as legal and accountancy services; and women entrepreneurs with dominant ownership of exporting companies. The book highlights the importance of identifying and removing the conditions that prevent women from exploiting the full potential of trading activities. This report is organized as follows: chapter one gives introduction; chapter two presents barriers, risks, and productive potential for small-scale traders in the Great lakes region; chapter three focuses on unshackling women traders: cross-border trade of Eru from Cameroon to Nigeria; chapter four focuses on women cross-border traders, challenges, and behavior change communications; chapter five gives the gender dimension of Uganda's cotton sector; chapter six focuses on services trade and gender; chapter seven focuses on gender in the tourism industry: the case of Kenya; chapter eight presents shape up and ship out?: gender constraints to growth and exporting in South Africa; and chapter nine presents trade and gender in Tanzania: what matters-participation or outcomes?. -
Publication
Integrating the Least Developed Countries into the World Trading System : The Current Impact of EU Preferences under Everything but Arms
(World Bank, Washington, DC, 2003-04) Brenton, PaulTrade preferences are a key element in industrial countries' efforts to assist the integration of least developed countries (LDCs) into the world economy. Brenton provides an initial evaluation of the impact of the European Union's recently introduced "Everything but Arms" (EBA) initiative on the products currently exported by the LDCs. He shows that the changes introduced by the EBA initiative in 2001 are relatively minor for currently exported products, primarily because over 99 percent of EU imports from the LDCs are in products which the EU had already liberalized, and the complete removal of barriers to the key remaining products-rice, sugar, and bananas-has been delayed. Brenton looks at the role EU preferences to LDCs in general have been playing and could play in assisting the integration of the LDCs. He shows that there is considerable variation across countries in the potential impact that EU preferences can have given current export structures. There is a group of LDCs for whom EU trade preferences on existing exports are not significant since these exports are mainly of products where the most-favored-nation duty is zero. Export diversification is the key issue for these countries. For other LDCs, EU preferences have the potential to provide a more substantial impact on trade. However, the author shows that only 50 percent of EU imports from non-ACP (Africa, Caribbean, and Pacific) LDCs which are eligible actually request preferential access to the EU. The prime suspect for this low level of use are the rules of origin, both the restrictiveness of the requirements on sufficient processing and the costs and difficulties of providing the necessary documentation. More simple rules of origin are likely to enhance the impact of EU trade preferences in terms of improving market access and in stimulating diversification toward a broader range of exports. -
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Carbon Labelling and Low-Income Country Exports: A Review of the Development Issues
( 2009) Brenton, Paul ; Edwards-Jones, Gareth ; Jensen, Michael FriisThis article discusses the carbon accounting and carbon-labelling schemes being developed to address growing concerns over climate change. Its particular concern is their impact on small stakeholders, especially low-income countries. The popular belief that trade is by definition problematic is not true; carbon efficiencies elsewhere in the supply chain may more than offset emissions from transportation. Indeed, low-income countries may offer important opportunities for carbon emission reductions because of their favourable climatic conditions and use of low energy-intensive production techniques. However, their effective inclusion in labelling schemes will require innovative solutions to provide low-cost data collection and certification. -
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Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa
(World Bank Group, Washington, DC, 2014-08) Brenton, Paul ; Portugal-Perez, Alberto ; Regolo, JulieMarket integration is key to ensuring sufficient and stable food supplies. This paper assesses the impediments to market integration in Central and Eastern Africa for three food staples: maize, rice, and sorghum. The paper uses a large database on monthly consumer prices for 150 towns in 13 African countries and detailed data on the length and quality of roads linking the towns. The analysis finds a substantial effect of distance and share of paved road on the level of market integration, as measured by relative prices. Furthermore, the paper evaluates the additional domestic and cross-border impediments to market integration in the region and represents them on a regional map. The analysis finds heterogeneous levels of domestic market integration across countries and significant "border effects" for the majority of contiguous countries in the sample, which reveal that markets are more integrated within than between countries. Countries that are members of the same regional trade agreement have substantially "thinner" borders with other members. Finally, the analysis shows that countries with less integrated domestic markets and "thicker" borders with their neighbors also have a higher prevalence of food insufficiency. These findings support policy efforts in tackling domestic and border impediments to transactions such as reforming customs, simplifying nontariff measures, addressing corruption, improving the quality of roads, and deepening regional trade agreements. -
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Export Diversification in Africa: The Importance of Good Trade Logistics
(World Bank, Washington, DC, 2015-06-15) Huria, Ankur ; Brenton, PaulEconomic activity in many African countries remains highly concentrated and exports are often dominated by mineral resources or a few primary products. The World Bank’s 2011 report on light manufacturing in Africa identified poor trade logistics performance as a constraint that especially penalized African exporters that relied on imported inputs, very often making them uncompetitive. The report highlighted research that demonstrated how poor logistics added roughly a 10 percent production cost penalty in Ethiopia, Tanzania, and Zambia across the five subsectors of light manufacturing where opportunities were identified as greatest in Africa. The report outlined how in Africa poor trade logistics increase production costs (often wiping out the labor cost advantage) and lead to long and unreliable delivery times, making local firm’s unattractive suppliers to lead firms in global value chains (GVCs), particularly for light manufacturing. This note seeks to contribute to a review of progress in achieving export diversification through greater exports of light manufacturing products. It looks at recent trends in the exports of the five categories of light manufacturing identified as having strong potential in Africa. The note reviews progress in improving trade logistics in Sub-Saharan Africa, with a focus on the three countries highlighted in the light manufacturing study: Ethiopia, Tanzania, and Zambia, and additionally Kenya and Uganda. -
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Streamlining Technical Measured on Medical Products to Combat COVID-19
(World Bank, Washington, DC, 2020-05-21) Jensen, Michael Friis ; Sela, Shane ; Brenton, Paul ; Keyser, JohnThe urgency of effective responses to the COVID-19 pandemic and the reliance of many low-income countries on imports of medical products, requires new approaches to regulation of these products. The challenge will be particularly acute for the new tests to identify infection, drugs to alleviate symptoms and machines to aid recovery as well as vaccines that are all expected to be developed in the coming months. Increased transparency, information sharing and greater cooperation among agencies responsible for the approval and inspection of medical goods around the world can help officials in low-income countries implement their mandate more effectively while maximizing efficient access to these commodities. Responsible agencies should focus on implementing technical regulations to protect health and safety, including interception of counterfeit and substandard products, and avoid wasting resources and creating delays by maintaining procedural practices that may be better addressed through alternative risk management strategies or seeking to regulate quality issues, which are best left to the market. Where there is a need to rapidly approve, test and inspect new goods or varieties that have not previously been imported, such as new equipment and medicines, the adoption of mutual recognition and/or equivalence can provide effective mechanisms to avoid regulatory delays while maintaining high levels of safety.