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Trade facilitation and country size

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  • Amin, Mohammad
  • Haidar, Jamal Ibrahim

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 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 nonlinear, much stronger for the relatively small than the large countries. Third, contrary to what 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 gross domestic product than the large countries.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6692.

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Date of creation: 01 Nov 2013
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Handle: RePEc:wbk:wbrwps:6692

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Keywords: Economic Theory&Research; Free Trade; Trade Policy; Transport and Trade Logistics; Common Carriers Industry;

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  1. Hertel, Thomas W. & Terrie Walmsley & Ken Itakura, 2001. "Dynamic Effects of the "New Age" Free Trade Agreement between Japan and Singapore," GTAP Working Papers 823, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  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. 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.
  4. Caroline L. Freund & Diana Weinhold, 2000. "On the effect of the Internet on international trade," International Finance Discussion Papers 693, Board of Governors of the Federal Reserve System (U.S.).
  5. Mohammad Amin & Jamal Haidar, 2012. "The cost of registering property: does legal origin matter?," Empirical Economics, 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 12044, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  2. repec:hal:journl:halshs-00717624 is not listed on IDEAS
  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. 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 12046, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

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