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Export performance and trade facilitation reform : hard and soft infrastructure

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  • Portugal-Perez, Alberto
  • Wilson, John S.

Abstract

The authors estimate the impact of aggregate indicators of"soft"and"hard"infrastructure on the export performance of developing countries. They build four new indicators for 101 countries over the period 2004-07. Estimates show that trade facilitation reforms do improve the export performance of developing countries. This is particularly true with investment in physical infrastructure and regulatory reform to improve the business environment. Moreover, the findings provide evidence that the marginal effect of infrastructure improvement on exports appears to be decreasing in per capita income. In contrast, the impact of information and communications technology on exports appears increasingly important for richer countries. Drawing on estimates, the authors compute illustrative exports growth for developing countries and ad-valorem equivalents of improving each indicator halfway to the level of the top performer in the region. As an example, improving the quality of physical infrastructure so that Egypt's indicator increases half-way to the level of Tunisia would increase exports by 10.8 percent. This is equivalent to a 7.4 percent cut in tariffs faced by Egyptian exporters across importing markets.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5261.

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Date of creation: 01 Apr 2010
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Handle: RePEc:wbk:wbrwps:5261

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Related research

Keywords: Environmental Economics&Policies; Transport Economics Policy&Planning; Free Trade; Economic Theory&Research; Trade Policy;

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Cited by:
  1. Saslavsky, Daniel & Shepherd, Ben, 2012. "Facilitating international production networks : the role of trade logistics," Policy Research Working Paper Series 6224, The World Bank.
  2. Antoni Estevadeordal & Paolo Giordano & Alexandre Rosa & Jordan Schwartz & Osvaldo Rosales & Ricardo Sánchez, 2011. "Invertir en integración: Los retornos de la complementariedad entre software y hardware," IDB Publications 40338, Inter-American Development Bank.
  3. Hoekman, Bernard & Wilson, John S., 2010. "Aid for trade : building on progress today for tomorrow's future," Policy Research Working Paper Series 5361, The World Bank.
  4. Cadot, Olivier & Fernandes, Ana & Gourdon, Julien & Mattoo, Aaditya, 2011. "Impact Evaluation of Trade Interventions: Paving the Way," CEPR Discussion Papers 8638, C.E.P.R. Discussion Papers.
  5. Inter-American Development Bank (IDB), 2011. "Investing in Integration: The Returns from Software-Hardware Complementarities," IDB Publications 41818, Inter-American Development Bank.
  6. Velea, Irina & Cadot, Olivier & Wilson, John S., 2010. "Do private inspection programs affect trade facilitation ?," Policy Research Working Paper Series 5515, The World Bank.
  7. Behar, Alberto & Manners, Phil & Nelson, Benjamin, 2011. "Exports and international logistics," Policy Research Working Paper Series 5691, The World Bank.

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