Which regions trade more amongst themselves? What are the top products being exported or imported? Who are the top exporting and importing countries in a particular region?
Here is a visual representation of regional trade in South Asia in WITS that can help quickly unpack some of these questions as they relate to the region.
After the jump, we break down these numbers and show how you can explore the viz.
“Ask anyone you meet on the street whether political risk has risen in the last few years, and you’d likely get a convincing yes,” a high official from Canada’s Export Development Center recently wrote.
Investors have always worried about the political landscape in host markets. But it’s true. Concerns over political risk are on the rise.
The most recent EIU’s Global Business Barometer shows that the proportion of executives that identified political risk as one of their main concerns increased from 36 percent in 2013 to 42 percent in 2014. MIGA’s Political Risk Survey tells a similar story: 20 percent of investors identified political risk as the most important constraint on Foreign Direct Investment (FDI) in developing economies. Indeed, according to risk management firm AON, political risk is now tenth on the list of main risks facing organizations today and is likely to rise in the ranking in the next few years.
With FDI from emerging markets also on the rise, are the concerns of these investors any different?
Editor's Note: "Notes from the Field" is an occasional feature where we let World Bank professionals conducting interesting trade-related projects around the globe explain some of the challenges and triumphs of their day-to-day work. The views expressed here are personal and should not be attributed to the World Bank. All interviews have been edited for clarity.
The interview below is with Ashish Narain, a Senior Economist at the World Bank Group’s Investment Climate Department. He is based in India from where he manages the World Bank Group’s South Asia Regional Trade and Investment Project. He spoke with us about his project, his personal connection with the region, and the evolution of regional trade facilitation in South Asia.
Governments and policy makers often look to small and medium-sized enterprises to drive growth in developing economies. These SMEs are held up as incubators of creativity and entrepreneurship, pushing the market to change, expand, and better meet consumer needs. But perhaps SMEs aren’t the only category to applaud. Research has shown that certain firms, regardless of their size, create jobs, export goods, and generally grow faster than others. We think these are the firms to watch.
To explain, we use an animal analogy developed by David Birch. Birch classified firms into “mice,” small firms that tend to stay small; “elephants,” large firms that do not grow rapidly; and “gazelles,” firms that both grow rapidly and account for a large share of employment or revenue growth. These gazelling firms are key to nascent, growing economies. As Caroline Freund and Martha Denisse Peirola show in Export Superstars, a World Bank Research Policy Paper, it is often a few big firms that account for the lion’s share of national exports. Not only are these few good firms responsible for the largest growth in exports, they also contribute most of the export diversification. In fact, countries’ relative comparative advantage is defined by these large, well-performing firms.
Chile has long been known as a superstar in liberalization reforms and innovative export-led growth strategies. The country successfully exports tourism and transportation services. But these successes are, in some ways, yesterday’s news. The country’s performance in more modern service exports – internet and communications technology, business process outsourcing and others – has been less remarkable. Chile is no India.
What does this mean for a country that has famously followed sound economic policies? Is the government doing something wrong? Is the country stuck? A look at the way services data is interpreted may provide a different answer. Perhaps Chile’s reputation is simply a victim of statistical inaccuracies.