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The Impact of Trade Costs on Exports: An Empirical Modelling

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  • Imran Ullah Khan
  • Kaliappa Kalirajan

    ()

Abstract

Studies, which have discussed some of the important issues concerning the measurement of trade costs, have conceded that the literature is still in the early stages of understanding and measuring what the real costs are. It is in this context, decomposing trade costs into 'natural' costs, 'behind the border' costs, 'explicit beyond the border' costs, and 'implicit beyond the border' costs, this paper suggests a method to measure the impacts of these components on changes in exports between countries in the absence of complete information on all the components of trade costs in home and partner countries. Empirical measurement has been demonstrated using 1999 and 2004 trade data from Pakistan. The results show that Pakistan's export growth between 1999 and 2004 came mainly from the reduction in both 'explicit and implicit beyond the border' trade costs in partner countries.

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File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2011/WP2011_07.pdf
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Bibliographic Info

Paper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2011-07.

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Length: 20
Date of creation: 2011
Date of revision:
Handle: RePEc:pas:asarcc:2011-07

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Keywords: trade costs; export growth decomposition; behind the border costs; beyond the border costs; Pakistan;

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Cited by:
  1. Gani, Azmat & Al Mawali, Nasser Rashid, 2013. "Oman's trade and opportunities of integration with the Asian economies," Economic Modelling, Elsevier, vol. 31(C), pages 766-774.
  2. Van Son Nguyen & Kaliappa Kalirajan, 2013. "Export of Environmental Goods: India's Potential and Constraints," ASARC Working Papers 2013-15, The Australian National University, Australia South Asia Research Centre.
  3. Gani, Azmat & Clemes, Michael D., 2013. "Modeling the effect of the domestic business environment on services trade," Economic Modelling, Elsevier, vol. 35(C), pages 297-304.

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