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Border and Behind-The-Border Trade Barriers and Country Exports

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  • Azim M. Sadikov
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    Abstract

    How do signatures required for exporting and business registration procedures affect the volume and composition of country''s exports? To answer this question, I develop a model where a country can export two types of products: differentiated and homogeneous. I show that export signatures and registration procedures reduce overall exports by increasing transaction costs. The impact, however, varies across goods according to the product''s degree of differentiation- the lack of price data on differentiated products due to their heterogeneity makes them more sensitive to export signatures. Regressions show that each extra signature exporters have to collect before a shipment can take place reduces aggregate exports by 4.2 percent. The impact is large, equivalent to raising importer''s tariff by 5 percentage points. Furthermore, each signature lowers exports of differentiated products by 4-5 percent more than exports of homogeneous goods. I find evidence that business registration procedures affect exports of differentiated products only.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/292.

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    Length: 32
    Date of creation: 01 Dec 2007
    Date of revision:
    Handle: RePEc:imf:imfwpa:07/292

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    Keywords: Trade policy; trade facilitation; exporter; aggregate exports; exporters; tariff rates; log exporter; import tariff; international trade; trade costs; bilateral imports; export price; oil exporters; border trade; export transaction; transport costs; trade barriers; trade liberalization; safety standards; exporting country; impact of trade; export performance; trade model; trading partner; export prices; aggregate trade; export volumes; export documents; changes in trade; volume of trade; export data; trade effect; total exports; perfect competition; trade volume; import tariffs; commodity exchanges; trade data; export equations; exports of goods; trade volumes; bilateral trade; skilled labor; trade flows; import demand; trade impact; elasticity of substitution; free trade; domestic price; country of origin; multilateral institutions; bilateral tariff; trade performance; trade levels; anticompetitive practices; import price; trade regimes; customs administration; diversified exports; bilateral trade data; global trade; export regime; global trade analysis; average tariff; world economy; international markets; export charges; trade area; tariff equivalent; foreign trade; export facilitation; transport services; income convergence; trading partners; pattern of trade; freight forwarders; per capita income; free trade area; products ? exports; preferential tariffs; trade integration; aggregate imports;

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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. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    3. International Finance Corporation & World Bank, 2008. "Doing Business 2009 : Comparing Regulation in 181 Economies," World Bank Publications, The World Bank, number 6313, October.
    4. Nguyen, Cuong, 2013. "Poverty, Inequality and Trade Facilitation in Low and Middle Income Countries," MPRA Paper 50312, University Library of Munich, Germany.

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