Reaping the Benefits from Trade andFDI 2.0Erik von UexkullCountry Economist, AFTP3Conference on ‘Trade and Regulation of S...
Purpose• Paper commissioned by FPD Investment Climate unitfor trade logistics, investment policy and businesstaxation (CIC...
Why trade and FDI 2.0?More interactiveExtends into new parts of lifeNew players
Why trade and FDI 2.0?Three transformational trends in global tradeand FDI:More interactive: Trade in TasksNew parts of ...
Trade in Tasks
Trade in Tasks
Trade in Tasks• Insiders and Outsiders: Firms engaging in tradein tasks (TNT = both importing and exporting)
The Internationalization of Services• Services account for over two thirds of GDP, butonly 20% of world trade, but that is...
The Internationalization of Services“Services can be an engine of export growth for somecountries (…) but more important i...
The Internationalization of Services• Services trade can make key inputs cheaper andthus boost competitiveness of domestic...
The Rise of the South
The Rise of the South• The ‘great doubling’• A commodity boom• South-North investment• Looking ahead– South-South offshori...
The Great DoublingShareinLMICManufacturingExports• Competition is getting tougher
A Commodity Boom• While demand for commodities is rising
What does all this mean for trade, FDI andgrowth?• New gains from trade, but also newchallenges• A wider view on openness...
Implications for trade and regulationof services in Africa• Trade in Services needs to be seen in the contextof other fund...
Implications for trade and regulationof services in Africa• But openness to services trade is complex… Regulation Compet...
Thank you!jvonuexkull@worldbank.org
Upcoming SlideShare
Loading in …5
×

von Uexkull 1e

305 views
239 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
305
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

von Uexkull 1e

  1. 1. Reaping the Benefits from Trade andFDI 2.0Erik von UexkullCountry Economist, AFTP3Conference on ‘Trade and Regulation of Services in Africa’Addis Ababa, 5/6/2013
  2. 2. Purpose• Paper commissioned by FPD Investment Climate unitfor trade logistics, investment policy and businesstaxation (CICTI)Review trade, FDI, growth (TFG) linkagesHighlight transformational trends in the global economyand their impact on TFG relationshipImplications for trade logistics / investment policy / tax indeveloping countries?Implications for trade and regulation of services in Africa
  3. 3. Why trade and FDI 2.0?More interactiveExtends into new parts of lifeNew players
  4. 4. Why trade and FDI 2.0?Three transformational trends in global tradeand FDI:More interactive: Trade in TasksNew parts of life: The Internationalization of ServicesMore players: The Rise of the South
  5. 5. Trade in Tasks
  6. 6. Trade in Tasks
  7. 7. Trade in Tasks• Insiders and Outsiders: Firms engaging in tradein tasks (TNT = both importing and exporting)
  8. 8. The Internationalization of Services• Services account for over two thirds of GDP, butonly 20% of world trade, but that is changingServicesExports/GDP
  9. 9. The Internationalization of Services“Services can be an engine of export growth for somecountries (…) but more important is that they are a keydeterminant of the competitiveness of all firms in openeconomies.”Francois and Hoekman (2009)
  10. 10. The Internationalization of Services• Services trade can make key inputs cheaper andthus boost competitiveness of domestic firms
  11. 11. The Rise of the South
  12. 12. The Rise of the South• The ‘great doubling’• A commodity boom• South-North investment• Looking ahead– South-South offshoring?– Another great doubling?
  13. 13. The Great DoublingShareinLMICManufacturingExports• Competition is getting tougher
  14. 14. A Commodity Boom• While demand for commodities is rising
  15. 15. What does all this mean for trade, FDI andgrowth?• New gains from trade, but also newchallenges• A wider view on opennessBehind the border issuesServices RegulationStronger trade – FDI complementarityA two way street• Trade costs matter more• Intra firm trade and global value chains• New markets and new role models
  16. 16. Implications for trade and regulationof services in Africa• Trade in Services needs to be seen in the contextof other fundamental trends in the globaleconomy• Services play a key role for reaping the benefitsfrom trade and FDI 2.0• New opportunities in services exports, butimports might be even more important Productivity / competitiveness ‘reverse offshoring’ ‘integration services’ Learning / innovation
  17. 17. Implications for trade and regulationof services in Africa• But openness to services trade is complex… Regulation Competition Link with FDI Role of the public sector• … and so is analytical work on servicestrade Data Data Data
  18. 18. Thank you!jvonuexkull@worldbank.org

×