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Trade times, importing, and exporting: Firm-level evidence

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  • Shepherd, Ben

Abstract

This paper uses data on 11 industries in 85 developing countries to show that trade times matter for import and export performance at the firm-level. Firms import more intermediate inputs if import licensing times are shorter. They export more of their production if border clearance times are shorter, but tend to use third party distributors more if clearance times are longer. This is the first time that imports and indirect exports have been considered in the firm-level literature on trade facilitation.

Suggested Citation

  • Shepherd, Ben, 2012. "Trade times, importing, and exporting: Firm-level evidence," MPRA Paper 41706, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:41706
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    References listed on IDEAS

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    1. 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.
    2. David L. Hummels & Georg Schaur, 2013. "Time as a Trade Barrier," American Economic Review, American Economic Association, vol. 103(7), pages 2935-2959, December.
    3. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
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    Cited by:

    1. Lodefalk, Magnus, 2017. "Servicification of Firms and Trade Policy Implications," World Trade Review, Cambridge University Press, vol. 16(1), pages 59-83, January.
    2. Bryan Roberts & Fynnwin Prager & Charles Baschnagel & Adam Rose & Brett Shears, 2021. "The economic benefits of trade facilitation: U.S. Customs and Border Protection’s Centers of Excellence and Expertise programme," The World Economy, Wiley Blackwell, vol. 44(2), pages 346-366, February.
    3. Beckman, Jayson & Dyck, John & Heerman, Kari, 2017. "The Global Landscape of Agricultural Trade, 1995-2014," Economic Information Bulletin 265270, United States Department of Agriculture, Economic Research Service.
    4. Volpe Martincus, Christian & Carballo, Jerónimo & Graziano, Alejandro, 2015. "Customs," Journal of International Economics, Elsevier, vol. 96(1), pages 119-137.
    5. Bernard Hoekman, 2014. "The Bali Trade Facilitation Agreement and Rulemaking in the WTO: Milestone, Mistake or Mirage?," RSCAS Working Papers 2014/102, European University Institute.
    6. Bernard Hoekman & Ben Shepherd, 2013. "Who Profits From Trade Facilitation Initiatives?," RSCAS Working Papers 2013/49, European University Institute.
    7. Giovanni Maggi & Monika Mrázová & J. Peter Neary, 2022. "Choked By Red Tape? The Political Economy Of Wasteful Trade Barriers," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 161-188, February.
    8. Nora Aboushady & Chahir Zaki, 2019. "Investment climate and Trade Margins in Egypt: Which Factors Do Matter?," Economics Bulletin, AccessEcon, vol. 39(4), pages 2275-2301.
    9. Hayakawa, Kazunobu & Keola, Souknilanh & Urata, Shujiro, 2022. "Using truck probe data to measure border clearance time: evidence from thailand," IDE Discussion Papers 846, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Volpe Martincus, Christian & Carballo, Jerónimo & Graziano, Alejandro, 2015. "Customs," Journal of International Economics, Elsevier, vol. 96(1), pages 119-137.
    11. Margarita Billon & Antonio Rodríguez‐Andrés & Ernesto Rodríguez‐Crespo, 2023. "Broadband use and trade facilitation: Impacts on bilateral trade of sub‐Saharan countries," African Development Review, African Development Bank, vol. 35(2), pages 113-125, June.
    12. Hayakawa, Kazunobu & Ito, Keiko & Fukao, Kyoji & Deseatnicov, Ivan, 2023. "The impact of the strengthening of export controls on Japanese exports of dual-use goods," International Economics, Elsevier, vol. 174(C), pages 160-179.
    13. Hayakawa, Kazunobu & Ito, Keiko & Fukao, Kyoji & Ivan, Deseatnicov, 2022. "The impact of the U.S.-China conflict and the strengthening of export controls on Japanese exports," IDE Discussion Papers 852, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    14. Hayakawa, Kazunobu & Laksanapanyakul, Nuttawut & Yoshimi, Taiyo, 2016. "Effect of import time on export patterns," IDE Discussion Papers 566, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    15. Aboushady, Nora & Zaki, Chahir, 2016. "Productivity, Exports Performance and Investment Climate: Evidence from Firm Level-Data," Conference papers 332689, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Rana Hendy & Chahir Zaki, 2014. "Trade Facilitation and Firms Exports: The Case of Egypt," Working Papers 843, Economic Research Forum, revised Oct 2014.
    17. Kahsay, Tewodros Negash & Kuik, Onno & Brouwer, Roy & van der Zaag, Pieter, 2014. "The Impact of Trade Liberalization and Removal of Non-Tariff Barriers on Water Use and Agricultural Production: A CGE Analysis of the Nile Basin Countries," Conference papers 332534, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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    More about this item

    Keywords

    Import Time; Export Time; Trade Facilitation; Developing Countries;
    All these keywords.

    JEL classification:

    • 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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