Facilitating Trade and Structural Adjustment Ecuador

This paper is the second of four country case studies which is a part of a broader researchprogramme addressing trade and structural adjustment issues in non-member economies which wasconducted as a follow-up to Trade and Structural Adjustment: Embracing Globalisation (OECD, 2005)which identified policies for successful trade-related structural adjustment. This paper studies the tradeliberalisation experience of Ecuador from the 1970s onwards.The report consists of 5 main sections Section 1 provides the introduction, while section 2provides an overview of Ecuador?s economic reforms from the 1970s onwards until the 2000s. Section 3looks at the structural changes in the economy and trade dynamics behind the changes. Section 4 takes acloser look at structural adjustment in four sectors, the cut-flowers, processed tuna, cereals, and textiles andclothing. Section 5 concludes with lessons learnt. Ecuador provides a case of a country whose tradeliberalisation and other structural reforms have led to mixed results. While trade liberalisation hasimproved resource allocations, macroeconomic instability, incomplete reforms, weak institutions andrelatively restrictive (but also highly informal) labour markets have made it difficult for Ecuador to reapthe full benefits of trade liberalisation.

OECD Trade Policy Papers

Facilitating Trade and Structural Adjustment Ecuador

Experiences in Non-Member Countries