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Monitoring Trade Costs in Southeast Asia

Author

Listed:
  • Patricia SOURDIN

    (School of Advanced International Studies (SAIS) Johns Hopkins University)

  • Richard POMFRET

    (School of Economics, University of Adelaide)

Abstract

This paper develops an Index of Trade Costs for ASEAN Member Countries, 1990-2007 based on the gap between cif and fob values of ASEAN exports to Australia. The cif/fob gap is a commonly used aggregate measure of trade costs, and Australia is a useful benchmark for ASEAN countries because it is a large trading partner whose major ports of entry are roughly equidistant from the ASEAN countries. The case for using this Index as a measure of trade costs is set out in the first section. The second section examines the raw data for the ASEAN countries. The third section reports econometric analysis of the cif/fob measure to better understand why trade costs vary across countries and to compare the ASEAN members' record to the global average during the period 1990-2007. The final section presents the two versions of the Index, discusses some reservations to using the cif/fob measure of trade costs, and suggests how the Index could be upgraded, maintained and extended.

Suggested Citation

  • Patricia SOURDIN & Richard POMFRET, 2009. "Monitoring Trade Costs in Southeast Asia," Working Papers d015, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:d015
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    File URL: http://www.eria.org/ERIA-DP-2009-12.pdf
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    Cited by:

    1. Lord, Montague & Artuso, Fabio & Record, Richard & Clarke, Julian, 2014. "Trading Costs in East Asia’s Global Value Chains," MPRA Paper 66437, University Library of Munich, Germany.
    2. Thomas Orliac, 2012. "The economics of trade facilitation [L'économie de la facilitation des échanges]," SciencePo Working papers Main tel-03681980, HAL.

    More about this item

    Keywords

    Trade costs; ASEAN.;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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