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Trade facilitation, regulatory quality and export performance

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  • Tomasz Iwanow

    (University of Manchester, Manchester, UK)

  • Colin Kirkpatrick

    (University of Manchester, Manchester, UK)

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    Abstract

    The objective of this paper is to quantify the potential gains in trade performance from the implementation of trade facilitation reform. The study applies a gravity model augmented with trade facilitation, regulatory quality and infrastructure indicators to assess the impact of trade facilitation and other trade-related constraints on export performance. Quantitatively, our results suggest that a 10 per cent improvement in trade facilitation would yield an increase in exports of about 5 per cent. Identical percentage improvements in the regulatory environment and in the quality of infrastructure provision would result in increases of 9-11 per cent and 8 per cent, respectively. The results confirm that while trade facilitation can contribute to improved export performance, improvements in the quality of the regulatory environment and the basic transport and communications infrastructure are equally or more important, in facilitating export growth. The conclusion is that trade facilitation alone is unlikely to result in a significant improvement in export performance. Copyright © 2007 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/jid.1399
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

    Volume (Year): 19 (2007)
    Issue (Month): 6 ()
    Pages: 735-753

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    Handle: RePEc:wly:jintdv:v:19:y:2007:i:6:p:735-753

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    Web page: http://www3.interscience.wiley.com/journal/5102/home

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    Citations

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    Cited by:
    1. 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.
    2. Persson, Maria, 2011. "From trade preferences to trade facilitation: Taking stock of the issues," Economics Discussion Papers 2011-23, Kiel Institute for the World Economy.
    3. Persson, Maria, 2008. "Trade Facilitation and the Extensive and Intensive Margins of Trade," Working Papers 2008:13, Lund University, Department of Economics.
    4. Zsoka Koczan & Alexander Plekhanov, 2013. "How important are non-tariff barriers? Complementarity of infrastructure and institutions of trading partners," Working Papers 159, European Bank for Reconstruction and Development, Office of the Chief Economist.
    5. Königer, Jens & Busse, Matthias & Hoekstra, Ruth, 2011. "The Impact of Aid for Trade Facilitation on the Costs of Trading," Proceedings of the German Development Economics Conference, Berlin 2011 48, Verein für Socialpolitik, Research Committee Development Economics.
    6. International Finance Corporation & World Bank, 2009. "Doing Business 2010 : Reforming through Difficult Times - Comparing Regulation in 183 Economies," World Bank Publications, The World Bank, number 2562.
    7. de Jong, Eelke & Bogmans, Christian, 2011. "Does corruption discourage international trade?," European Journal of Political Economy, Elsevier, vol. 27(2), pages 385-398, June.
    8. Gaytaranov, Jalal A. & Gunter, Lewell F. & Stegelin, Forrest E., 2013. "Cost of Trade Impact on Transition Country Exports," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142986, Southern Agricultural Economics Association.
    9. Nguyen, Cuong, 2013. "Poverty, Inequality and Trade Facilitation in Low and Middle Income Countries," MPRA Paper 50312, University Library of Munich, Germany.
    10. Celbis, Mehmet Güney & Nijkamp, Peter & Poot, Jacques, 2013. "How big is the impact of infrastructure on trade? Evidence from meta-analysis," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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