Trade Facilitation and Economic Development : Measuring the Impact

Trade Facilitation and Economic Development : Measuring the Impact

The authors analyze the relationship between trade facilitation, trade flows, and GDP per capita in the Asia-Pacific region for the goods sector. They define and measure trade facilitation using four broad indicators. These are constructed using co...

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Bibliographic Details
Main Authors: Wilson, John S., Mann, Catherine L., Otsuki, Tsunehiro
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
TRADE FACILITATION
ECONOMIC DEVELOPMENT
GROSS DOMESTIC PRODUCT
PORT FACILITIES
CUSTOMS ADMINISTRATION
REGULATORY ENVIRONMENTS
ELECTRONIC INSTRUMENTS
GRAVITY MODEL
TRADE BARRIERS
TRADE EXPANSION
ASIA-PACIFIC ECONOMIC COOPERATION COUNCIL ABSOLUTE VALUE
AD VALOREM
AIR TRANSPORT
APPLIED TARIFF
AVERAGE TRADE
BENCHMARKS
BILATERAL TRADE
BORDER TRADE
CAPACITY BUILDING
COMMODITIES
COMMODITY
CONSTANT ELASTICITY OF SUBSTITUTION
CONSUMERS
CUSTOMS
CUSTOMS PROCEDURES
DEVELOPMENT
DEVELOPMENT ASSISTANCE
DEVELOPMENT STRATEGIES
DONOR AGENCIES
ECONOMIC COOPERATION
ECONOMIC THEORY
ELASTICITY
ELASTICITY OF TRADE
EXPORT PRICES
EXPORTERS
EXPORTS
FOREIGN TRADE
GDP
GDP PER CAPITA
GLOBAL COMPETITIVENESS
GLOBAL TRADE
GNP
GRAVITY EQUATION
GRAVITY MODEL APPROACH
GROSS NATIONAL PRODUCT
IMPACT OF TRADE
IMPORT BARRIERS
IMPORT PRICES
INCOME
INDUSTRY TRADE
INTERNATIONAL ORGANIZATIONS
INTERNATIONAL TRADE
MANUFACTURING
MEASURE OF TRADE
PER CAPITA INCOME
PREFERENTIAL TRADE
PREFERENTIAL TRADE ARRANGEMENTS
PRODUCTIVITY GROWTH
REAL GDP
REGIONAL TRADE
REGIONAL TRADE ARRANGEMENTS
REGRESSION ANALYSIS
REGULATORY BARRIERS
RETAIL TRADE
SAFETY STANDARDS
TARIFF BARRIERS
TARIFF DATA
TARIFF POLICIES
TARIFF RATE
TARIFF RATES
TARIFF REDUCTION
TELECOMMUNICATIONS
TIME SERIES
TRADE
TRADE CLASSIFICATION
TRADE COSTS
TRADE DATA
TRADE EFFECTS
TRADE FLOW DATA
TRADE FLOWS
TRADE ISSUES
TRADE LIBERALIZATION
TRADE VALUES
TRAINS
TRANSPARENCY
TRANSPORT COSTS
TRANSPORT SERVICES
TROUGH
UNILATERAL TRADE
URUGUAY ROUND
WAREHOUSES
WTO
ASIA-PACIFIC ECONOMIC COOPERATION COUNCIL
ABSOLUTE VALUE
Online Access:http://documents.worldbank.org/curated/en/2003/03/2183606/trade-facilitation-economic-development-measuring-impact
http://hdl.handle.net/10986/19158
Description
Summary:The authors analyze the relationship between trade facilitation, trade flows, and GDP per capita in the Asia-Pacific region for the goods sector. They define and measure trade facilitation using four broad indicators. These are constructed using country-specific data for port efficiency, customs environment, regulatory environment, and electronic-business usage. They estimate the relationship between these indicators and trade flows using a gravity model. The model includes tariffs and other standard variables. The authors find that enhanced port efficiency has a large and positive effect on trade. Regulatory barriers deter trade. The results also suggest that improvements in customs and greater electronic-business use significantly expands trade, but to a lesser degree than the effect of ports or regulations. The authors then estimate the benefits of specific trade facilitation efforts by quantifying differential improvement by members of the Asia Pacific Economic Cooperation (APEC) in these four areas. Based on a scenario in which APEC members below average improve capacity halfway to the average for all members, the authors find that intra-APEC trade could increase by $254 billion. This represents approximately a 21 percent increase in intra-APEC trade flows, about half coming from improved port efficiencies in the region. Using Dollar and Kraay's estimate of the effect of trade on per capita GDP, these improvements in trade facilitation suggest an increase in APEC average per capita GDP of 4.3 percent.

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