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Policy and performance in customs: Evaluating the trade facilitation agreement

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  • Russell Hillberry
  • Xiaohui Zhang

Abstract

This paper links cross‐country variation in trade facilitation policies to prominent indicators of national customs and logistics performance. We test the hypotheses that the policy data explain variation in the performance indicators, independent of other country characteristics that are plausibly exogenous to changes in trade facilitation policies. We use a LASSO procedure to choose among the many potential explanatory variables in the model. In general we find that country characteristics related to geography, income, and the general quality of governance better explain cross‐country variation in customs and logistics performance than do the measures of trade facilitation policy.

Suggested Citation

  • Russell Hillberry & Xiaohui Zhang, 2018. "Policy and performance in customs: Evaluating the trade facilitation agreement," Review of International Economics, Wiley Blackwell, vol. 26(2), pages 438-480, May.
    • Handle: RePEc:bla:reviec:v:26:y:2018:i:2:p:438-480
    DOI: 10.1111/roie.12338
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    Cited by:

    1. Christian Volpe Martincus, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 96856, February.
    2. Lionel Fontagné & Gianluca Orefice & Roberta Piermartini, 2020. "Making small firms happy? The heterogeneous effect of trade facilitation measures," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 565-598, August.
    3. Jaime DE MELO & Ben SHEPHERD, 2018. "The Economics of Non-Tariff Measures: A Primer," Working Papers P212, FERDI.
    4. Volpe Martincus, Christian, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 7994, August.
    5. Beckman, Jayson & Dyck, John & Heerman, Kari, 2017. "The Global Landscape of Agricultural Trade, 1995-2014," Economic Information Bulletin 265270, United States Department of Agriculture, Economic Research Service.
    6. Harald Oberhofer & Michael Pfaffermayr & Richard Sellner, 2018. "Revisiting Time as a Trade Barrier: Evidence from a Panel Structural Gravity Model," CESifo Working Paper Series 7426, CESifo.
    7. Bernard Hoekman & Dominique Njinkeu, 2017. "Integrating Africa: Some Trade Policy Research Priorities and Challenges," RSCAS Working Papers 2017/43, European University Institute.
    8. Utsav Kumar & Ben Shepherd & Roselle Dime, 2018. "Trade Costs, Time, and Supply Chain Reliability," Working Papers id:12826, eSocialSciences.

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