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Timeliness and contract enforceability in intermediate goods trade

Author

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  • Gamberoni, Elisa
  • Lanz, Rainer
  • Piermartini, Roberta

Abstract

This paper shows that the institutional environment and the ability to export on time are sources of comparative advantage as important as factors of production. In particular, the ability to export on time is crucial to explain comparative advantage in intermediate goods. These findings underscore the importance of investing in infrastructure and fostering trade facilitation to boost a country's participation in production networks. Furthermore, the paper contributes to the so-called"distance puzzle"by showing that the increasing importance of distance over time is in part driven by trade in intermediate goods.

Suggested Citation

  • Gamberoni, Elisa & Lanz, Rainer & Piermartini, Roberta, 2010. "Timeliness and contract enforceability in intermediate goods trade," Policy Research Working Paper Series 5482, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5482
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    Cited by:

    1. Marjan Petreski & Branimir Jovanovic & Igor Velickovski, 2017. "Tariff-Induced (De)industrialization: An Empirical Analysis," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(3), pages 345-381, September.
    2. Córcoles, David & Díaz-Mora, Carmen & Gandoy, Rosario, 2014. "Product sophistication: A tie that binds partners in international trade," Economic Modelling, Elsevier, vol. 44(S1), pages 33-41.
    3. Peter Mayerhofer, 2013. "Wiens Industrie in der wissensbasierten Stadtwirtschaft. Wandlungsprozesse, Wettbewerbsfähigkeit, industriepolitische Ansatzpunkte," WIFO Studies, WIFO, number 57934.
    4. David Córcoles & Carmen Díaz-Mora & Rosario Gandoy, 2015. "Export Survival in Global Production Chains," The World Economy, Wiley Blackwell, vol. 38(10), pages 1526-1554, October.
    5. Alyson C. Ma & Ari Van Assche, 2014. "Vertical specialization, tariff shirking and trade," Chapters, in: Benno Ferrarini & David Hummels (ed.), Asia and Global Production Networks, chapter 5, pages 148-178, Edward Elgar Publishing.
    6. Filippo Bontadini & Rinaldo Evangelista & Valentina Meliciani & Maria Savona, 2019. "Integration in Global Value Chains and Employment in Europe," SPRU Working Paper Series 2019-16, SPRU - Science Policy Research Unit, University of Sussex Business School.
    7. United Nations ESCAP, 2011. "Trade Facilitation in Asia and the Pacific: An Analysis of Import and Export Processes, Studies in Trade and Investment 71," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2615, Juni.
    8. Zaclicever, Dayna, 2017. "Trade integration and production sharing: A characterization of Latin American and Caribbean countries’ participation in regional and global value chains," Comercio Internacional 137, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Miraskari , Seyed Reza & Tayebi , Seyed Komail & Vaez Barzani , Mohammad, 2013. "An Analysis of International Outsourcing in Iran-China Trade Relations," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 8(1), pages 109-139, January.
    10. Catherine Laffineur & El Mouhoud, 2015. "The jobs at risk from globalization: the French case," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(3), pages 477-531, August.
    11. Ma, Alyson C. & Van Assche, Ari, 2014. "Vertical Specialization, Tariff Shirking, and Trade," ADB Economics Working Paper Series 390, Asian Development Bank.
    12. Cristina Herghelegiu & Evgenii Monastyrenko, 2020. "Risk and Cost Sharing in Firm-to-Firm Trade," DEM Discussion Paper Series 20-24, Department of Economics at the University of Luxembourg.
    13. Branimir Jovanović & Marjan Petreski & Igor Velickovski, 2015. "Tariff-induced (de)industrialization in transition economies: A comparative analysis," wiiw Balkan Observatory Working Papers 116, The Vienna Institute for International Economic Studies, wiiw.

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    More about this item

    Keywords

    Economic Theory&Research; Free Trade; Environmental Economics&Policies; Trade Policy; Transport Economics Policy&Planning;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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