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The Economic Impact of Trade Facilitation

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  • Michael Engman

Abstract

This paper examines the economic impact of trade facilitation and in particular the link between trade facilitation and trade flows, government revenue and foreign direct investment. It is part of a series of studies that analyse various aspects of trade facilitation and the objective is to contribute to discussions in the WTO Negotiating Group on Trade Facilitation (NGTF) and elsewhere in the trade policy community. The paper finds that improved and simplified customs procedures would have a significant positive impact on trade flows. It further shows that a large number of mostly developing countries have managed to boost government revenue by implementing customs modernisation programmes that result in more efficient collection of trade taxes. In addition, the paper demonstrates that facilitated cross-border movement of goods would have a positive effect on the ability of a country to attract foreign direct investment and better integrate in international production supply chains.

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File URL: http://dx.doi.org/10.1787/861403066656
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Trade Policy Papers with number 21.

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Date of creation: 12 Oct 2005
Date of revision:
Handle: RePEc:oec:traaab:21-en

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Keywords: foreign direct investment; customs; government revenue; trade facilitation; border procedures; trade flows; trade transaction costs;

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Cited by:
  1. Peng Bin, 2009. "Enhancing Export Competitiveness through Trade Facilitation in Asia," STUDIES IN TRADE AND INVESTMENT, in: Impact of Trade Facilitation on Export Competitiveness: a Regional Perspective, volume 66, chapter 1, pages 1-17 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  2. Paul-Bogdan Zamfir, 2011. "The Need Of Total Quality In Public Administration," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 223-226, December.
  3. Cecília Hornok & Miklós Koren, 2011. "Administrative Barriers and the Lumpiness of Trade," CEU Working Papers 2012_6, Department of Economics, Central European University, revised 01 Sep 2011.
  4. Persson, Maria, 2007. "Trade Facilitation and the EU-ACP Economic Partnership Agreements: Who Has the Most to Gain?," Working Papers 2007:8, Lund University, Department of Economics, revised 01 Oct 2007.
  5. Nguyen, Cuong, 2013. "Poverty, Inequality and Trade Facilitation in Low and Middle Income Countries," MPRA Paper 50312, University Library of Munich, Germany.
  6. Itzhak Goldberg & Lee Branstetter & John Gabriel Goddard & Smita Kuriakose, 2008. "Globalization and Ttechnology Absorption in Europe and Central Asia : The Role of Trade, FDI, and Cross-Border Knowledge Flows," World Bank Publications, The World Bank, number 6445, October.
  7. Matthias Helble & Catherine Mann & John Wilson, 2012. "Aid-for-trade facilitation," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(2), pages 357-376, June.
  8. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(17), pages 1-33.
  9. Itzhak Goldberg & John Gabriel Goddard & Smita Kuriakose & Jean-Louis Racine, 2011. "Igniting Innovation : Rethinking the Role of Government in Emerging Europe and Central Asia," World Bank Publications, The World Bank, number 2358, October.
  10. Institute for International Trade, 2006. "A Comparative Analysis of Trade Facilitation in Selected Regional and Bilateral Trade Agreement," Working Papers 1706, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
  11. Escap (ed.), 2008. "Unveiling Protectionism: Regional Responses to Remaining Barriers in the Textiles and Clothing Trade," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2500, December.
  12. Fugazza, Marco & Maur, Jean-Christophe, 2008. "Non-tariff barriers in CGE models: How useful for policy?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 475-490.
  13. Wignaraja, Ganeshan & Ramizo, Dorothea & Burmeister, Luca, 2012. "Asia-Latin America Free Trade Agreements: An Instrument for Inter-Regional Liberalization and Integration?," ADBI Working Papers 382, Asian Development Bank Institute.
  14. Martinez-Zarzoso Inma & Márquez-Ramos Laura, 2008. "The Effect of Trade Facilitation on Sectoral Trade," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-46, September.
  15. Márquez-Ramos, Laura & Martínez-Zarzoso, Inmaculada & Suárez-Burguet, Celestino, 2011. "Trade policy versus trade facilitation: An application using Good Old OLS," Economics Discussion Papers 2011-38, Kiel Institute for the World Economy.
  16. Cecília Hornok & Miklós Koren, 2011. "Lumpy Trade and the Welfare Effects of Administrative Barriers," CeFiG Working Papers 14, Center for Firms in the Global Economy, revised 22 Sep 2011.
  17. Noordin Azhari, 2008. "textiles and clothing trade post-agreement on textiles and clothing - Can trade facilitation help?," STUDIES IN TRADE AND INVESTMENT, in: Unveiling Protectionism - Regional Responses to Remaining Barriers in the Textiles and Clothing Trade, pages 171-183 p United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  18. Pushpa Raj Rajkarnikar, 2010. "An analysis of import-export procedures and processes in China," Working Papers 8910, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..

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