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Trade Facilitation and Country Size

Author

Listed:
  • Mohammad Amin

    () (World Bank - Enterprise Analysis Unit)

  • Jamal Ibrahim Haidar

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

Abstract

It is argued that compared with large countries, small countries rely more on trade and therefore they are more likely to adopt liberal trading policies. The present paper extends this idea beyond the conventional trade openness measures by analyzing the relationship between country size and the number of documents required to export and import, a measure of trade facilitation. Three important results follow. First, trade facilitation does improve as the country size becomes smaller; that is, small countries perform better than large countries in terms of trade facilitation. Second, the relationship between country size and trade facilitation is non-linear, much stronger for the relatively small than the large countries. Third, contrary to what the existing studies might suggest, the relationship between country size and trade facilitation does not appear to be driven by the fact that small countries trade more as a proportion of their GDP than the large countries.

Suggested Citation

  • Mohammad Amin & Jamal Ibrahim Haidar, 2012. "Trade Facilitation and Country Size," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00717612, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00717612 Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00717612
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    References listed on IDEAS

    as
    1. Haidar, Jamal Ibrahim, 2012. "The impact of business regulatory reforms on economic growth," Journal of the Japanese and International Economies, Elsevier, vol. 26(3), pages 285-307.
    2. Mohammad Amin & Jamal Haidar, 2012. "The cost of registering property: does legal origin matter?," Empirical Economics, Springer, vol. 42(3), pages 1035-1050, June.
    3. Peter Schwarz, 2007. "Does capital mobility reduce the corporate-labor tax ratio?," Public Choice, Springer, vol. 130(3), pages 363-380, March.
    4. repec:hal:journl:halshs-00717423 is not listed on IDEAS
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    6. Simeon Djankov & Caroline Freund & Cong S. Pham, 2010. "Trading on Time," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 166-173, February.
    7. Wilson,John S. & Mann, Catherine L. & Otsuki, Tsunehiro, 2003. "Trade facilitation and economic development : measuring the impact," Policy Research Working Paper Series 2988, The World Bank.
    8. Haidar, Jamal Ibrahim, 2009. "Investor protections and economic growth," Economics Letters, Elsevier, vol. 103(1), pages 1-4, April.
    9. Caroline Freund & Diana Weinhold, 2002. "The Internet and International Trade in Services," American Economic Review, American Economic Association, vol. 92(2), pages 236-240, May.
    10. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters,in: Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523 World Scientific Publishing Co. Pte. Ltd..
    11. Caroline L. Freund & Diana Weinhold, 2000. "On the effect of the Internet on international trade," International Finance Discussion Papers 693, Board of Governors of the Federal Reserve System (U.S.).
    12. 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.
    13. Alesina, Alberto & Wacziarg, Romain, 1998. "Openness, country size and government," Journal of Public Economics, Elsevier, vol. 69(3), pages 305-321, September.
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    Cited by:

    1. Fedotenkov, Igor, 2015. "International Trade and Migration: Why Do Migrants Choose Small Countries?," MPRA Paper 66035, University Library of Munich, Germany.
    2. Haidar, Jamal Ibrahim, 2012. "The impact of business regulatory reforms on economic growth," Journal of the Japanese and International Economies, Elsevier, vol. 26(3), pages 285-307.
    3. Haidar, Jamal Ibrahim, 2012. "Trade and productivity: Self-selection or learning-by-exporting in India," Economic Modelling, Elsevier, vol. 29(5), pages 1766-1773.
    4. repec:gam:jsusta:v:9:y:2017:i:4:p:541-:d:94915 is not listed on IDEAS
    5. repec:hal:journl:halshs-00717624 is not listed on IDEAS

    More about this item

    Keywords

    openness; Country size; trade facilitation; Facilités commerciales; taille du pays;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O - Economic Development, Innovation, Technological Change, and Growth

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