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Trade Facilitation and Country Size

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  • Mohammad Amin

    ()
    (World Bank - Enterprise Analysis Unit)

  • Jamal Ibrahim Haidar

    ()
    (World Bank - Washington District of Columbia (United States), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

Abstract

It is argued that compared with large countries, small countries rely more on trade and therefore they are more likely to adopt liberal trading policies. The present paper extends this idea beyond the conventional trade openness measures by analyzing the relationship between country size and the number of documents required to export and import, a measure of trade facilitation. Three important results follow. First, trade facilitation does improve as the country size becomes smaller ; that is, small countries perform better than large countries in terms of trade facilitation. Second, the relationship between country size and trade facilitation is non-linear, much stronger for the relatively small than the large countries. Third, contrary to what the existing studies might suggest, the relationship between country size and trade facilitation does not appear to be driven by the fact that small countries trade more as a proportion of their GDP than the large countries.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00717612.

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Date of creation: May 2012
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Handle: RePEc:hal:cesptp:halshs-00717612

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Keywords: Country size; trade facilitation; openness.;

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  1. W. Hertel, Thomas, 2001. "Dynamic Effects of the “New Age” Free Trade Agreement between Japan and Singapore," Journal of Economic Integration, Center for Economic Integration, Sejong University, Center for Economic Integration, Sejong University, vol. 16, pages 446-484.
  2. Wilson,John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2003. "Trade facilitation and economic development : measuring the impact," Policy Research Working Paper Series 2988, The World Bank.
  3. Caroline L. Freund & Diana Weinhold, 2000. "On the effect of the Internet on international trade," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 693, Board of Governors of the Federal Reserve System (U.S.).
  4. Jamal Ibrahim Haidar, 2012. "The impact of Business Regulatory Reforms on Economic Growth," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00717423, HAL.
  5. Mohammad Amin & Jamal Haidar, 2012. "The cost of registering property: does legal origin matter?," Empirical Economics, Springer, Springer, vol. 42(3), pages 1035-1050, June.
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Cited by:
  1. Jamal Ibrahim Haidar, 2012. "The Impact of Business Regulatory Reforms on Economic Growth," Documents de travail du Centre d'Economie de la Sorbonne, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne 12044, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  2. Jamal Ibrahim Haidar, 2012. "Trade and productivity: self-selection or learning-by-exporting in India," Documents de travail du Centre d'Economie de la Sorbonne, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne 12046, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  3. Shintaro Hamanaka & Romana Domingo, 2012. "Measuring Long-Term Commodity-Level Trade Costs: The Case Of Asia," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1250014-1-1.
  4. repec:hal:journl:halshs-00717624 is not listed on IDEAS

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