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Administrative barriers to trade

Author

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  • Hornok, Cecília
  • Koren, Miklós

Abstract

We build a model of administrative barriers to trade to understand how they affect trade volumes, shipping decisions and welfare. Because administrative costs are incurred with every shipment, exporters have to decide how to break up total trade into individual shipments. Consumers value frequent shipments, because they enable them to consume close to their preferred dates. Hence per-shipment costs create a welfare loss.

Suggested Citation

  • Hornok, Cecília & Koren, Miklós, 2015. "Administrative barriers to trade," Journal of International Economics, Elsevier, vol. 96(S1), pages 110-122.
  • Handle: RePEc:eee:inecon:v:96:y:2015:i:s1:p:s110-s122
    DOI: 10.1016/j.jinteco.2015.01.002
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    References listed on IDEAS

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    More about this item

    Keywords

    Administrative barriers; Trade facilitation; Customs union; Gravity equation;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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