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Does Trade Facilitation Matter in Bilateral Trade?

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  • Chahir Zaki

    () (Centre d’Economie de la Sorbonne, Université Paris 1 Pantéon Sorbonne and Paris School of Economics)

Abstract

This paper estimates an augmented gravity model incorporating different aspects of trade facilitation in developed and developing countries. Trade facilitation is defined as measures that aim at making international trade easier by eliminating administrative delays, simplifying commercial procedures, increasing transparency, security and the place of new technologies in trade. This paper provides new theoretical and empirical enhancements. On the one hand, the model is based on theoretical foundations related to monopolistic competition and border effects. The originality of this paper is that trade facilitation facets are included in the model. On the other hand, the empirical achievement of the paper is that it uses different databases allowing us to take into account many features of trade facilitation. I use several databases coming from different sources: Doing Business (World Bank) and Institutional Profiles (CEPII). My main findings show that transaction time for imports and the number of documents for exports have a negative impact on trade. Our sample is split into sub-samples in order to take into account the impact of development level. It turns out that trade facilitation aspects have not the same impact on developed and developing countries. Finally, we conclude that some perishable (food and beverages), seasonal (wearing apparels) and high-value added products are more sensitive to import time than other products. Hard industries are rather sensitive to export documents.

Suggested Citation

  • Chahir Zaki, 2009. "Does Trade Facilitation Matter in Bilateral Trade?," Working Papers 472, Economic Research Forum, revised Mar 2009.
  • Handle: RePEc:erg:wpaper:472
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    References listed on IDEAS

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    1. David L. Hummels & Georg Schaur, 2013. "Time as a Trade Barrier," American Economic Review, American Economic Association, vol. 103(7), pages 2935-2959, December.
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    14. Baier, Scott L. & Bergstrand, Jeffrey H., 2001. "The growth of world trade: tariffs, transport costs, and income similarity," Journal of International Economics, Elsevier, vol. 53(1), pages 1-27, February.
    15. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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    Cited by:

    1. Volpe Martincus, Christian & Carballo, Jerónimo & Graziano, Alejandro, 2015. "Customs," Journal of International Economics, Elsevier, vol. 96(1), pages 119-137.
    2. Daniel Saslavsky & Ben Shepherd, 2014. "Facilitating international production networks: The role of trade logistics," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(7), pages 979-999, October.
    3. Vinokurov, Evgeny & Demidenko, Mikhail & Pelipas, Igor & Tochitskaya, Irina & Shymanovich, Gleb & Lipin, Andrey & Movchan, Veronika, 2015. "Estimating the Economic Effects of Reducing Non-Tariff Barriers in the EEU," MPRA Paper 68058, University Library of Munich, Germany.
    4. Gabriel Felbermayr & Wilhelm Kohler & Volker Treier & Heribert Dieter & Christoph Herrmann & Cosimo Beverelli & Simon Neumüller & Robert Teh & Richard Senti & Matthias Lücke & Peter-Tobias Stoll, 2014. "Bali-Abkommen: Wer gewinnt, und wer trägt die Kosten?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 67(03), pages 03-34, February.
    5. Chahir Zaki, 2010. "Towards an Explicit Modeling of Trade Facilitation in CGE Models: Evidence from Egypt," Working Papers 515, Economic Research Forum, revised 04 Jan 2010.
    6. 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.
    7. repec:idb:idbbks:7994 is not listed on IDEAS
    8. Volpe Martincus, Christian & Carballo, Jerónimo & Graziano, Alejandro, 2015. "Customs," Journal of International Economics, Elsevier, vol. 96(1), pages 119-137.
    9. Chahir Zaki, 2014. "On Trade Policies and Wage Disparity: Evidence from Egyptian Microeconomic Data," International Economic Journal, Taylor & Francis Journals, vol. 28(1), pages 37-69, March.
    10. Biswas, Trina & Kennedy, P. Lynn, 2015. "The Role of E-governance on Agricultural Trade," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196865, Southern Agricultural Economics Association.
    11. Chahir Zaki, 2011. "On Trade Policies and Wage Disparity in Egypt: Evidence from Microeconomic Data," Working Papers 606, Economic Research Forum, revised 08 Jan 2011.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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