Overseas Development Institute
- Trade facilitation promotes productivity growth, employment creation and poverty reduction by raising volume and diversification of exports, reallocating resources to more productive activities, improving access to inputs and enabling participation in value chains.
Physical (hard) and regulatory (soft) infrastructure are both important, and are in fact complementary in order to facilitate trade.
The indirect effects of regional infrastructure on households, firms and governments need to be considered.
Aid for Trade has been effective in raising exports and improving the investment climate. Future Aid for Trade interventions need to aim at reducing the cost of trading; address binding constraint to growth; ensure effective coordination between donors and recipients; address the transnational and regional level constraints and; improve M&E of impacts, outcomes and outputs.
Development finance institutions play an increasingly important role in promoting growth, especially when they focus on in power generation and on the financial sector, that can in turn catalyse investment in other sectors