Trade Facilitation and Export Diversification

This paper shows that improved trade facilitation can help promote export diversification in developing countries. We find that 10 per cent reductions in the costs of international transport and domestic exporting costs (documentation, inland transport, port and customs charges) are associated with...

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Main Authors:	Dennis, Allen, Shepherd, Ben
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 International Linkages to Development Role of International Organizations O190 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330
Online Access:	http://hdl.handle.net/10986/5642

id	okr-10986-5642
recordtype	oai_dc
spelling	okr-10986-56422021-04-23T14:02:23Z Trade Facilitation and Export Diversification Dennis, Allen Shepherd, Ben Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 International Linkages to Development Role of International Organizations O190 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330 This paper shows that improved trade facilitation can help promote export diversification in developing countries. We find that 10 per cent reductions in the costs of international transport and domestic exporting costs (documentation, inland transport, port and customs charges) are associated with export diversification gains of 4 and 3 per cent, respectively, in a sample of 118 developing countries. Customs costs play a particularly important role in these results. Lower market entry costs can also promote diversification, but the effect is weaker (1 per cent). We also find evidence that trade facilitation has stronger effects on diversification in poorer countries. Our results are highly robust to estimation using alternative dependent and independent variables, different country samples, and alternative econometric techniques. We link these findings to recent advances in trade theory that emphasise firm heterogeneity, and trade growth at the extensive margin. 2012-03-30T07:33:49Z 2012-03-30T07:33:49Z 2011 Journal Article World Economy 03785920 http://hdl.handle.net/10986/5642 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 International Linkages to Development Role of International Organizations O190 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330
spellingShingle	Trade Policy International Trade Organizations F130 Country and Industry Studies of Trade F140 International Linkages to Development Role of International Organizations O190 Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330 Dennis, Allen Shepherd, Ben Trade Facilitation and Export Diversification
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper shows that improved trade facilitation can help promote export diversification in developing countries. We find that 10 per cent reductions in the costs of international transport and domestic exporting costs (documentation, inland transport, port and customs charges) are associated with export diversification gains of 4 and 3 per cent, respectively, in a sample of 118 developing countries. Customs costs play a particularly important role in these results. Lower market entry costs can also promote diversification, but the effect is weaker (1 per cent). We also find evidence that trade facilitation has stronger effects on diversification in poorer countries. Our results are highly robust to estimation using alternative dependent and independent variables, different country samples, and alternative econometric techniques. We link these findings to recent advances in trade theory that emphasise firm heterogeneity, and trade growth at the extensive margin.
format	Journal Article
author	Dennis, Allen Shepherd, Ben
author_facet	Dennis, Allen Shepherd, Ben
author_sort	Dennis, Allen
title	Trade Facilitation and Export Diversification
title_short	Trade Facilitation and Export Diversification
title_full	Trade Facilitation and Export Diversification
title_fullStr	Trade Facilitation and Export Diversification
title_full_unstemmed	Trade Facilitation and Export Diversification
title_sort	trade facilitation and export diversification
publishDate	2012
url	http://hdl.handle.net/10986/5642
_version_	1764395791295709184

Trade Facilitation and Export Diversification

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