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Impact of Trade Facilitation on Parts and Components Trade

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  • Niru Yadav

Abstract

This article utilizes data from seventy-seven countries over the period 2004-07 in a gravity trade model to examine the impact of four dimensions of trade facilitation-physical infrastructure, information and communication technology, business environment, and border efficiency-on parts and components and final goods trade for the machinery and transport equipment sector. The results show that the effect of importers' overall trade facilitation measures is stronger for promoting parts and components than for final goods trade. Among the four dimensions, border efficiency has the largest impact on trade flows for this sector, and the effect of exporter and particularly importers' border efficiency is important for parts and components, as compared to final goods trade.

Suggested Citation

  • Niru Yadav, 2014. "Impact of Trade Facilitation on Parts and Components Trade," The International Trade Journal, Taylor & Francis Journals, vol. 28(4), pages 287-310, October.
    • Handle: RePEc:taf:uitjxx:v:28:y:2014:i:4:p:287-310
    DOI: 10.1080/08853908.2014.922040
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    3. Imad Kareem Alaamshani & Hanny Zurina Hamzah & Shivee Ranjanee Kaliappan & Normaz Wana Ismail, 2021. "Impact of Trade Facilitation on Extensive Margin," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 131-147.

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