1887

International Trade Working Paper

The International Trade Working Paper series promptly documents and disseminates reviews, analytical work and think-pieces to facilitate the exchange of ideas and to stimulate debates and discussions on issues that are of interest to developing countries in general and Commonwealth members in particular. The issues considered in the papers may be evolving in nature, leading to further work and refinement at a later stage.

English

Dynamic Trade Policy for Small Island Developing States

Lessons for the Pacific from the Caribbean

Small island developing states (SIDS) have common economic challenges and are faced with high costs for energy, infrastructure, transportation, trade logistics and public administration. These challenges are increasingly undergirded by new concerns such as the high incidence of chronic non-communicable diseases, demographic transitions, high levels of outward migration, and the rising cost of adapting to climate change. There is therefore an increased need for small states to pursue a multifaceted, innovation driven growth agenda and for development agencies to rethink development options and strategies. From a trade standpoint, these countries are now required to break out of the commodity and low value-added traps that have historically affected the agriculture, manufacturing, tourism and wider service sectors. This has become particularly urgent in the context of anaemic growth among traditional trade partners in the developed market economies. As such, the issue of how SIDS can enhance productive capacity, export diversification and global competitiveness by moving up global value chains needs to be considered. This paper aims to examine the growth and trade performance of the Caribbean and Pacific regions and evaluates the trade policy framework and its scope for economic transformation.

English

Keywords: Caribbean, small island developing states, Pacific, trade policy, economic growth
JEL: O24: Economic Development, Innovation, Technological Change, and Growth / Development Planning and Policy / Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy; O31: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Innovation and Invention: Processes and Incentives; R23: Urban, Rural, Regional, Real Estate, and Transportation Economics / Household Analysis / Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics; F13: International Economics / Trade / Trade Policy; International Trade Organizations; R58: Urban, Rural, Regional, Real Estate, and Transportation Economics / Regional Government Analysis / Regional Development Planning and Policy; P45: Economic Systems / Other Economic Systems / Other Economic Systems: International Trade, Finance, Investment and Aid
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