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Who Profits from Trade Facilitation Initiatives?

  • Hoekman, Bernard
  • Shepherd, Ben

Extensive research has demonstrated the existence of large potential welfare gains from trade facilitation—measures to reduce the overall costs of the international movement of goods. From an equity perspective an important question is how those benefits are distributed across and within nations. After discussing the possible impacts of trade facilitation, we use firm-level data for a wide variety of developing countries to investigate whether it is mostly large firms that benefit from trade facilitation. We find that firms of all sizes export more in response to improved trade facilitation. Our results suggest that trade facilitation can be beneficial in a range of countries, including those that are primarily involved in value chains as suppliers.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9490.

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Date of creation: May 2013
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Handle: RePEc:cpr:ceprdp:9490
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  1. Hoekman , Bernard & Nicita, Alessandro, 2008. "Trade Policy, Trade Costs, and Developing Country Trade," Policy Research Working Paper Series 4797, The World Bank.
  2. Fisman, Raymond & Svensson, Jakob, 2000. "Are corruption and taxation really harmful to growth? - firm-level evidence," Policy Research Working Paper Series 2485, The World Bank.
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  4. Baldwin, Richard, 2012. "Global supply chains: Why they emerged, why they matter, and where they are going," CEPR Discussion Papers 9103, C.E.P.R. Discussion Papers.
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  7. Inmaculada Martínez-Zarzoso & Laura Márquez-Ramos, 2007. "The Effect of Trade Facilitation on Sectoral Trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 167, Ibero-America Institute for Economic Research.
  8. Shepherd, Ben & Wilson, John S., 2007. "Trade, Infrastructure, and Roadways in Europe and Central Asia: New Empirical Evidence," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 723-747.
  9. Saslavsky, Daniel & Shepherd, Ben, 2012. "Facilitating international production networks : the role of trade logistics," Policy Research Working Paper Series 6224, The World Bank.
  10. Frederick Mayer & William Milberg, 2013. "Aid for Trade in a world of global value chains: chain power, the distribution of rents and implications for the form of aid," Brooks World Poverty Institute Working Paper Series ctg-2013-34, BWPI, The University of Manchester.
  11. Simeon Djankov & Tim Ganser & Caralee McLiesh & Rita Ramalho & Andrei Shleifer, 2010. "The Effect of Corporate Taxes on Investment and Entrepreneurship," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(3), pages 31-64, July.
  12. William Milberg & Deborah Winkler, 2010. "Financialisation and the dynamics of offshoring in the USA," Cambridge Journal of Economics, Oxford University Press, vol. 34(2), pages 275-293, March.
  13. Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2006. "Investment climate and international integration," World Development, Elsevier, vol. 34(9), pages 1498-1516, September.
  14. Bernard Hoekman & Alessandro Nicita, 2010. "Assessing the Doha Round: Market access, transactions costs and aid for trade facilitation," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(1), pages 65-79.
  15. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2003. "Trade Facilitation and Economic Development: A New Approach to Quantifying the Impact," World Bank Economic Review, World Bank Group, vol. 17(3), pages 367-389, December.
  16. Stephanie BARRIENTOS & Frederick MAYER & John PICKLES & Anne POSTHUMA, 2011. "Decent work in global production networks: Framing the policy debate," International Labour Review, International Labour Organization, vol. 150(3-4), pages 297-317, December.
  17. Svensson, Jakob, 2002. "Who Must Pay Bribes and How Much? Evidence from a cross-section of firms," Seminar Papers 713, Stockholm University, Institute for International Economic Studies.
  18. Ben Shepherd, 2013. "Trade times, importing and exporting: firm-level evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 20(9), pages 879-883, June.
  19. Evdokia Moïsé & Silvia Sorescu, 2013. "Trade Facilitation Indicators: The Potential Impact of Trade Facilitation on Developing Countries' Trade," OECD Trade Policy Papers 144, OECD Publishing.
  20. Allen Dennis & Ben Shepherd, 2011. "Trade Facilitation and Export Diversification," The World Economy, Wiley Blackwell, vol. 34(1), pages 101-122, 01.
  21. Thorsten Beck & Asli Demirgüç-Kunt & Vojislav Maksimovic, 2004. "Bank competition and access to finance: international evidence," Proceedings, Federal Reserve Bank of Cleveland, pages 627-654.
  22. Calì, Massimiliano & te Velde, Dirk Willem, 2011. "Does Aid for Trade Really Improve Trade Performance?," World Development, Elsevier, vol. 39(5), pages 725-740, May.
  23. Richard J. Sexton & Ian Sheldon & Steve McCorriston & Humei Wang, 2007. "Agricultural trade liberalization and economic development: the role of downstream market power," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 253-270, 03.
  24. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing the Benefits of Trade Facilitation: A Global Perspective," The World Economy, Wiley Blackwell, vol. 28(6), pages 841-871, 06.
  25. Joseph Francois & Hans Van Meijl & Frank Van Tongeren, 2005. "Trade liberalization in the Doha Development Round," Economic Policy, CEPR;CES;MSH, vol. 20(42), pages 349-391, 04.
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