An analysis of the trade regime in Bolivia in 2001: A trade policy benchmark for low income countries

This note evaluates Bolivia’s trade regime in 2001, using the methodology developed in Hinkle et al. (2003) in “How Far Did Africa’s First Generation Trade Reforms Go? An Intermediate Methodology for Comparative Analysis of Trade Polices.” We find that Bolivia’s trade policy regime in 2001 is the most open among the low-income countries analyzed to date using this methodology. Low maximum and average import duties; absence of tariff exemptions, non-tariff barriers, discriminatory domestic taxation, and export taxes; functioning duty suspension and drawback schemes; and timely VAT reimbursement for exporters’ inputs make Bolivia an empirical benchmark of good practice trade policies for low income countries. The Africa Region Working Paper Series expedites dissemination of applied research and policy studies with potential for improving economic performance and social conditions in SubSaharan Africa. The series publishes papers at preliminary stages to stimulate timely discussions within the Region and among client countries, donors, and the policy research community. The editorial board for the series consists of representatives from professional families appointed by the Region’s Sector Directors. For additional information, please contact Momar Gueye, (82220), Email: mgueye@worldbank.org or visit the Web Site: http://www.worldbank.org/afr/wps/index.htm. The findings, interpretations, and conclusions in this paper are those of the authors. They do not necessarily represent the views of the World Bank, its Executive Directors, or the countries that they represent and should not be attributed to them. P ub lic D is cl os ur e A ut ho riz ed P ub lic D is cl os ur e A ut ho riz ed P ub lic D is cl os ur e A ut ho riz ed P ub lic D is cl os ur e A ut ho riz ed P ub lic D is cl os ur e A ut ho riz ed P ub lic D is cl os ur e A ut ho riz ed P ub lic D is cl os ur e A ut ho riz ed P ub lic D is cl os ur e A ut ho riz ed AFRICA REGION WORKING PAPER SERIES NO. 74 AN ANALYSIS OF THE TRADE REGIME IN BOLIVIA IN 2001: A TRADE POLICY BENCHMARK FOR LOW INCOME COUNTRIES Francesca Castellani Alberto Herrou-Aragon