IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/7210.html
   My bibliography  Save this paper

Trade effects of customs reform : evidence from Albania

Author

Listed:
  • Fernandes,Ana Margarida
  • Hillberry,Russell Henry
  • Mendoza Alcantara,Alejandra
  • Fernandes,Ana Margarida
  • Hillberry,Russell Henry
  • Mendoza Alcantara,Alejandra

Abstract

Despite enormous academic interest in international trade costs and keen policy interest in efforts to mitigate them, so far there is very little hard evidence on the impacts of trade facilitation efforts. This paper exploits a dramatic reduction in the rate of physical inspections by Albanian customs to estimate the effects of fewer inspection-related delays on the level and composition of imports. In this setting, the paper finds evidence that the expected median number of days spent in Albanian customs falls by 7 percent when the probability that a shipment is inspected falls from 50 percent or more to under 50 percent. In turn, this reduction in time produces a 7 percent increase in import value. The paper finds evidence that the reforms favored imports from preferential trading partners, especially the European Union. There are also reform-induced changes in the composition of trade, including increases in average quantities and unit prices, the number of shipments, and the number of importing firms per product-country pair and the number of countries per firm-product pair. A back-of-the-envelope calculation suggests that the estimate of 7 percent import growth along an intensive margin is roughly consistent with a 0.36 percentage point reduction in average tariff equivalent trade costs. Applying this figure to the value of Albania's non-oil imports produces a reform-induced trade cost savings estimate of approximately US$12 million in 2012.

Suggested Citation

  • Fernandes,Ana Margarida & Hillberry,Russell Henry & Mendoza Alcantara,Alejandra & Fernandes,Ana Margarida & Hillberry,Russell Henry & Mendoza Alcantara,Alejandra, 2015. "Trade effects of customs reform : evidence from Albania," Policy Research Working Paper Series 7210, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7210
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/713351468190188513/pdf/WPS7210.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    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.
    2. ., 2014. "Maritime networks," Chapters,in: Asian-Pacific Rim Logistics, chapter 3, pages 58-92 Edward Elgar Publishing.
    3. Kropf, Andreas & Sauré, Philip, 2014. "Fixed costs per shipment," Journal of International Economics, Elsevier, vol. 92(1), pages 166-184.
    4. Simonovska, Ina & Waugh, Michael E., 2014. "The elasticity of trade: Estimates and evidence," Journal of International Economics, Elsevier, vol. 92(1), pages 34-50.
    5. Ina Simonovska & Michael Waugh, 2011. "The Elasticity of Trade: Estimates and Evidence," Working Papers 319, University of California, Davis, Department of Economics.
    6. Bertrand Laporte, 2011. "Risk management systems: using data mining in developing countries' customs administration," Post-Print halshs-00601379, HAL.
    7. Maria Persson, 2013. "Trade facilitation and the extensive margin," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(5), pages 658-693, August.
    8. Anne-Marie GEOURJON & Bertrand LAPORTE, 2004. "Risk Management for Targeting Customs Controls in Developing Countries: A Risky Venture for Revenue Performance?," Working Papers 200416, CERDI.
    9. Ousmane COUNDOUL & Massene GADIAGA & Anne-Marie GEOURJON & Bertrand LAPORTE, 2012. "Inspecting less to inspect better: The use of data mining for risk management by customs administrations," Working Papers P46, FERDI.
    10. Guimaraes, Paulo & Portugal, Pedro, 2009. "A Simple Feasible Alternative Procedure to Estimate Models with High-Dimensional Fixed Effects," IZA Discussion Papers 3935, Institute for the Study of Labor (IZA).
    11. anonymous, 2014. "Payday Loans: Time for Review," Inside the Vault, Federal Reserve Bank of St. Louis, issue Fall.
    12. Hummels, David, 2001. "Time As A Trade Barrier," Working papers 28701, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jerónimo Carballo & Georg Schaur & Alejandro Graziano & Christian Volpe Martincus, 2016. "Transit Trade," IDB Publications (Working Papers) 7688, Inter-American Development Bank.
    2. Jerónimo Carballo & Georg Schaur & Alejandro Graziano & Christian Volpe Martincus, 2016. "Transit Trade," IDB Publications (Working Papers) 94658, Inter-American Development Bank.
    3. Joel CARIOLLE & Cyril CHALENDARD & Anne-Marie GEOURJON & Bertrand LAPORTE, 2016. "Décloisonner l’analyse des données pour appuyer la modernisation des douanes : une illustration à partir du Gabon," Working Papers 201618, CERDI.
    4. 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.
    5. repec:elg:eechap:17028_14 is not listed on IDEAS
    6. Jerónimo Carballo & Georg Schaur & Christian Volpe Martincus, 2017. "Transportation and Trade Interactions: A Trade Facilitation Perspective," IDB Publications (Working Papers) 97957, Inter-American Development Bank.
    7. repec:idb:idbbks:7994 is not listed on IDEAS
    8. Marijke J.D. Bos & Gonzague Vannoorenberghe, 2018. "Imported input varieties and product innovation : evidence from five developing countries," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2018009, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    9. Jerónimo Carballo & Georg Schaur & Christian Volpe Martincus, 2018. "Transportation and trade interactions: a trade facilitation perspective," Chapters,in: Handbook of International Trade and Transportation, chapter 14, pages 422-450 Edward Elgar Publishing.

    More about this item

    Keywords

    International Trade and Trade Rules; Trade Facilitation; Rules of Origin; Trade Policy; Trade and Multilateral Issues; Trade and Services;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:7210. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.