Person:
Brenton, Paul

Trade and Regional Integration

Fields of Specialization

INTERNATIONAL TRADE, CLIMATE CHANGE, CARBON ACCOUNTING, TRADE POLICY

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Trade and Regional Integration

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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Now showing 1 - 10 of 31

A Review of Cross-Border Trade in the Horn of Africa
(World Bank, Washington, DC, 2021-06-21) Brenton, Paul
This paper provides a review of existing literature on cross-border trade among the Horn of African countries Djibouti, Eritrea, Ethiopia, Kenya and Somalia. It offers analysis on key traded products particularly food crops and livestock, a review on main trade routes and border marketing centers;the operation of cross-border value chains in the borderlands, including the economic impact on border communities and a summary of commonchallenges facing cross-border trade within the region. The review is augmented with analysis of available data on trade between these countriesfrom UN COMETRADE, FEWS NET and FAO.To put cross-border trade in context, the paper starts by reviewing the available information from officially recorded trade data.
Emerging Emitters and Global Carbon Mitigation Efforts
(World Bank, Washington, DC, 2020-12) Cui, Can; Guan, Dabo; Wang, Daoping; Chemutai, Vicky; Brenton, Paul
International efforts to avoid dangerous climate change have historically focused on reducing energy-related carbon-di-oxide (CO2) emissions from countries with the largest economies, including the EU and U.S., and/or the largest populations, such as, China and India. However, in recent years, emissions have surged among a different, much less-examined group of countries, raising the issue of how to address a next generation of high-emitting economies that need strong growth to reduce relatively high levels of poverty. They are also among the countries most at risk from the adverse impacts of climate change. Compounding the paucity of analyses of these emerging emitters, the long-term effects of the Coronavirus (COVID-19) pandemic on economic activity and energy systems remain unclear. Here, the authors analyze the trends and drivers of emissions in each of the fifty-nine developing countries whose emissions over 2010-2018 grew faster than the global average (excluding China and India), and then project their emissions under a range of pandemic recovery scenarios. Although future emissions diverge considerably depending on responses to Coronavirus (COVID-19) and subsequent recovery pathways, the authors find that emissions from these countries nonetheless reach a range of 5.1-7.1 Gt CO2 by 2040 in all their scenarios, substantially in excess of emissions from these regions in published scenarios that limit global warming to 2 degrees Celsius . The authors results highlight the critical importance of ramping up mitigation efforts in countries that to this point have played a limited role in contributing the stock of atmospheric CO2 while also ensuring the sustained economic growth that will be necessary to eliminate extreme poverty and drive the extensive adaptation to climate change that will be required.
Cereal Prices and Child Undernutrition in Ethiopia
(Taylor and Francis, 2021-07-06) Brenton, Paul
This paper looks at how changing cereal prices affect child undernutrition in Ethiopia. It derives height for age (stunting) and weight for height (wasting) as indicators of child undernutrition from the two most recent years of the Livings Standards Measurement Survey and utilizes market prices for key cereals, teff, wheat, and maize at the enumeration area across all regions of the country. Using a panel data fixed effects model, the analysis finds that, contrary to previous studies, rising cereal prices are positively associated with improved child stunting rates for children between ages 6 months and 5 years. There is no evidence to suggest that cereal prices have a significantly greater impact on height for age for children that come from households who are net sellers of these crops. Cereal prices do not appear to be associated with wasting, which is a shorter-term negative health outcome.
Horn of Africa Regional Economic Memorandum: Overview
(World Bank, Washington, DC, 2021-06-21) Brenton, Paul; Edjigu, Habtamu; Masaki, Takaaki; Sienaert, Alexis
The objective of this Regional Economic Memorandum (REM) is to strengthen the economic analysis available to policymakers on the challenges and opportunities for regional economic integration to support job creation and economic transformation in the Horn of Africa. It assesses the current state of regional economic integration, how policies and investments can deepen this integration, and how this could help to address the opportunities and challenges confronting the region. The analysis applies both an economic geography perspective (based on the 3Ds framework of the 2009 WDR – density, distance, and division) and the lens of the jobs and economic transformation (JET) agenda, whilst taking into account fragility and conflict and the region’s complex and evolving political economy. This overview synthesizes the key findings of the analysis conducted for the HoA REM, full details of which are presented in a series of Background Papers. The overview briefly describes key aspects of the region’s economy and development progress (Section 2). Next, in Section 3, it presents features of the economic geography of the region and some key results from economic modeling and transport connectivity analysis. The findings demonstrate the salience of the JET agenda in the Horn, and this and its implications are discussed in Section 4. Finally, Section 5 concludes by highlighting the main policy messages which emerge from the REM’s regional-level analysis.
What Explains the Low Survival Rate of Developing Country Export Flows?
(World Bank, 2011-03-30) Brenton, Paul; von Uexkull, Erik
Successful export growth and diversification require not only entry into new export products and markets but also the survival and growth of export flows. For a cross-country dataset of product-level bilateral export flows, exporting is found to be a perilous activity, especially in low-income countries. Unobserved individual heterogeneity in product-level export flow data prevails even when a wide range of observed country and product characteristics are controlled for. This questions previous studies that used the Cox proportional hazards model to analyze export survival. Following Meyer (1990), a Prentice-Gloeckler (1978) model is estimated, amended with a gamma mixture distribution summarizing unobserved individual heterogeneity. The empirical results confirm the significance of a range of product- as well as country-specific factors in determining the survival of new export flows. Important for policymaking is the finding of the value of learning-by-doing for export survival: experience with exporting the same product to other markets or different products to the same market is found to strongly increase the chance of export survival. A better understanding of such learning effects could substantially improve the effectiveness of export promotion strategies.
The Trade and Climate Change Nexus: The Urgency and Opportunities for Developing Countries
(Washington, DC: World Bank, 2021-09-29) Brenton, Paul; Chemutai, Vicky
While trade exacerbates climate change, it is also a central part of the solution because it has the potential to enhance mitigation and adaptation. This timely report explores the different ways in which trade and climate change intersect. Trade contributes to the emissions that cause global warming and is itself also affected by climate change through changing comparative advantages. The report also confronts several myths concerning trade and climate change. The report focuses on the impacts of, and adjustments to, climate change in developing countries and on how future trade opportunities will be affected by both the changing climate and the policy responses to address it. The report discusses how trade can provide the goods and services that drive mitigation and adaptation. It also addresses how climate change creates immense challenges for developing countries, but also new opportunities to promote trade diversification in the transition to a low-carbon world. Suitable trade and environmental policies can offer effective economic incentives to attain both sustainable growth and poverty reduction.
Pathways to African Export Sustainability
(Washington, DC: World Bank, 2012-07-02) Cadot, Olivier; Brenton, Paul; Pierola, Martha Denisse
This report provides tentative leads toward such policy prescriptions, based on an overview of the empirical evidence. Chapter one sets the stage by putting Africa's export-survival performance into perspective and proposing a framework that will guide the interpretation of empirical evidence throughout the report. Chapter two covers country-level determinants of export sustainability at origin and destination, including the exporting country's business environment. Chapter three explores some of the firm-level evidence on what drives export sustainability, including uncertainty, incomplete contracts, learning, and networks. Finally, chapter four offers tentative policy implications. The main conclusions from this overview of the causes of Africa's low export sustainability should be taken with caution both because of the complexity of the issue and because of the very fragmentary evidence on which the overview is based. The author should be more cautious in drawing policy implications, as hasty policy prescriptions are the most common trap into which reports of this kind can fall. A first, solid conclusion is that the author needs substantial additional work on the nature and causes of low export survival rates in developing countries to determine the path to high export sustainability.
Avenues for Export Diversification: Issues for Low-Income Countries
(World Bank, Washington, DC, 2009) Walkenhorst, Peter; Brenton, Paul; Newfarmer, Richard
While diversification of exports is often a desirable trade objective, it is far from clear how best to tap into new opportunities. This paper discusses the range of avenues of diversification, including (i) expanding the range of markets into which existing products are sold (geographic diversification); (ii) upgrading the value of existing products, including agricultural exports (quality diversification); and (iii) taking advantage of opportunities to expand non-merchandise exports (services diversification), in addition to introducing entirely new export products. All offer opportunities for cost?effective positive policies relating to the incentive regime, backbone services, and export support institutions.
Political Economy of Regional Integration in Sub-Saharan Africa
(World Bank, Washington, DC, 2016-02-01) Hoffman, Barak; Brenton, Paul; Brenton, Paul; Hoffman, Barak
Regional integration in sub-Saharan Africa (SSA) is crucial for its further economic development and, more importantly, its structural transformation away from agriculture towards higher value-added activities, such as manufacturing and services. Yet there are many paths towards greater integration, some of which are easier than others. In order to gain insights into how regional integration is occurring in SSA, determine impediments to it, and develop recommendations for how the World Bank and other development agencies can help further facilitate it, the World Bank commissioned a set of political economy of regional integration studies covering sector analyses of agriculture, financial services, professional services, trade facilitation, and transport. This report summarizes the findings from the sector studies and suggests recommendations for further efforts in these areas by the World Bank and other development agencies. In a comparative context, the findings of the studies suggest cautious optimism for regional integration efforts in sub-Saharan Africa. Economic integration is more likely to succeed when it occurs alongside regional attempts at improving political stability and or developing joint infrastructure.
Export Diversification in Africa: The Importance of Good Trade Logistics
(World Bank, Washington, DC, 2015-06-15) Huria, Ankur; Brenton, Paul
Economic 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.