The Effect of Trade Facilitation on Sectoral Trade
AbstractThis paper aims to analyse the effect of trade facilitation on sectoral trade flows. We use data from the World Bank's Doing Business Database on the fees associated with completing the procedures to export or import goods in a country, on the number of documents needed and on the required time to complete all the administrative procedures to import and export. An augmented gravity equation is estimated for 13 exporters and 167 importers using a number of estimation techniques, namely OLS, PPML and the Harvey model. A common result is that trade flows increase by lowering transport costs and the number of days required to trade. The outcome supports multilateral initiatives, as that in the WTO, which encourages countries to assess their trade facilitation needs and priorities and to improve them. The measures adopted will not only benefit the country that improves trade facilitation, but also it's trading partners.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.
Volume (Year): 8 (2008)
Issue (Month): 1 (September)
Contact details of provider:
Web page: http://www.degruyter.com
Other versions of this item:
- Inmaculada Martínez-Zarzoso & Laura Márquez-Ramos, 2007. "The Effect of Trade Facilitation on Sectoral Trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 167, Ibero-America Institute for Economic Research.
- F10 - International Economics - - Trade - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2003. "Trade Facilitation and Economic Development: A New Approach to Quantifying the Impact," World Bank Economic Review, World Bank Group, vol. 17(3), pages 367-389, December.
- Rauch, James E., 1999.
"Networks versus markets in international trade,"
Journal of International Economics,
Elsevier, vol. 48(1), pages 7-35, June.
- Andrei A. Levchenko, 2007.
"Institutional Quality and International Trade,"
Review of Economic Studies,
Oxford University Press, vol. 74(3), pages 791-819.
- Santos Silva, Joao & Tenreyro, Silvana, 2005.
"The Log of Gravity,"
CEPR Discussion Papers
5311, C.E.P.R. Discussion Papers.
- Djankov, Simeon & Freund, Caroline & Pham, Cong S., 2006.
"Trading on time,"
Policy Research Working Paper Series
3909, The World Bank.
- Michael Engman, 2005. "The Economic Impact of Trade Facilitation," OECD Trade Policy Papers 21, OECD Publishing.
- Soloaga, Isidro & Wilson, John S. & Mejia, Alejandro, 2006. "Moving forward faster : trade facilitation reform and Mexican competitiveness," Policy Research Working Paper Series 3953, The World Bank.
- John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing the Benefits of Trade Facilitation: A Global Perspective," The World Economy, Wiley Blackwell, vol. 28(6), pages 841-871, 06.
- Yvan Decreux & Lionel Fontagné, 2006. "A Quantitative Assessment of the Outcome of the Doha Development Agenda," Working Papers 2006-10, CEPII research center.
- I-Hui Cheng & Howard J. Wall, 2005.
"Controlling for heterogeneity in gravity models of trade and integration,"
Federal Reserve Bank of St. Louis, issue Jan, pages 49-63.
- I-Hui Cheng & Howard J. Wall, 2004. "Controlling for heterogeneity in gravity models of trade and integration," Working Papers 1999-010, Federal Reserve Bank of St. Louis.
- Inmaculada Martínez-Zarzoso & Laura Márquez-Ramos, 2005. "Does Technology Foster Trade? Empirical Evidence for Developed and Developing Countries," Atlantic Economic Journal, International Atlantic Economic Society, vol. 33(1), pages 55-69, March.
- Dennis, Allen, 2006. "The impact of regional trade agreements and trade facilitation in the Middle East and North Africa region," Policy Research Working Paper Series 3837, The World Bank.
- Christodoulopoulou, Styliani, 2010. "THE Effects of Multilateral Trade Liberalization on the Extensive and the Intensive Margins of Trade," MPRA Paper 29169, University Library of Munich, Germany.
- Ying Yi Tsai, 2010. "Strategic Choice of Freight Mode and Investments in Transport Infrastructure within Production Networks," Working Papers id:3083, eSocialSciences.
- Brooks, Douglas H. & Stone, Susan F., 2010.
"Accelerating Regional Integration: Issues at the Border,"
ADBI Working Papers
200, Asian Development Bank Institute.
- Douglas H. Brooks & Susan F. Stone, 2010. "Accelerating Regional Integration : Issues at the Border," Trade Working Papers 23009, East Asian Bureau of Economic Research.
- Bourdet, Yves & Persson, Maria, 2010.
"Completing the EU Customs Union. The Effects of Trade Procedure Harmonization,"
2010:7, Lund University, Department of Economics.
- Persson, Maria & Bourdet, Yves, 2010. "Completing the EU Customs Union. The Effects of Trade Procedure Harmonization," Working Paper Series 848, Research Institute of Industrial Economics.
- Persson, Maria, 2010.
"Trade Facilitation and the Extensive Margin,"
Working Paper Series
828, Research Institute of Industrial Economics.
- Maria Persson, 2013. "Trade facilitation and the extensive margin," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(5), pages 658-693, August.
- Bernard Hoekman & Ben Shepherd, 2013.
"Who Profits From Trade Facilitation Initiatives?,"
RSCAS Working Papers
2013/49, European University Institute.
- Persson, Maria, 2008. "Trade Facilitation and the Extensive and Intensive Margins of Trade," Working Papers 2008:13, Lund University, Department of Economics.
- Nguyen, Cuong, 2013. "Poverty, Inequality and Trade Facilitation in Low and Middle Income Countries," MPRA Paper 50312, University Library of Munich, Germany.
- Bourdet, Yves & Persson, Maria, 2011.
"Reaping the Benefits of Deeper Euro-Med Integration Through Trade Facilitation,"
2011:15, Lund University, Department of Economics.
- Bourdet, Yves & Persson, Maria, 2011. "Reaping the Benefits of Deeper Euro-Med Integration Through Trade Facilitation," Working Paper Series 881, Research Institute of Industrial Economics.
- Liu, Lan & Yue, Chengyan, 2013. "Investigating the impacts of time delays on trade," Food Policy, Elsevier, vol. 39(C), pages 108-114.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.