Developing countries integration in international trade: measurements and determinants

In the empirical literature it has been demonstrated that trade can be a powerful engine to enhance economic development and poverty reduction. But international market participation is a multidimensional concept that can be apprehended through different outputs: a greater openness to trade, an increase in the extensive margin of exports and imports, an enhancement of the value-added exported or an increase in export competitiveness or import performance. A new openness indicator is proposed that takes into account these different dimensions of trade integration. We try then to reveal the main obstacles to trade that influence it and that can be addressed by existing development instruments, like aid for trade and preferential market access. We find strong evidence that further investment in infrastructure and additional market access is needed to increase the participation of developing countries in international trade.