Trade Costs, Barriers to Entry, and Export Diversification in Developing Countries
This paper finds that a 1 percent reduction in the cost of exporting or the cost of international transport is associated with an export diversification gain of 0.3 percent or 0.4 percent respectively. Lower domestic market entry costs can also...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/09/8367098/trade-costs-barriers-entry-export-diversification-developing-countries http://hdl.handle.net/10986/7385 |
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okr-10986-73852021-04-23T14:02:34Z Trade Costs, Barriers to Entry, and Export Diversification in Developing Countries Dennis, Allen Shepherd, Ben CDI DIO ECONOMIC DEVELOPMENT ELASTICITY ID INLAND TRANSPORT INTERNATIONAL BANK INTERNATIONAL TRANSPORT JA MT RCD TRADE FACILITATION This paper finds that a 1 percent reduction in the cost of exporting or the cost of international transport is associated with an export diversification gain of 0.3 percent or 0.4 percent respectively. Lower domestic market entry costs can also promote diversification, but the elasticity is weaker (-0.1). To obtain these results, the authors construct new measures of export diversification for 118 developing countries using highly detailed 8-digit mirror data from the European Union. The analysis also incorporates new export cost data from the World Bank's Doing Business database, covering document preparation, inland transport, administrative fees, and port/customs charges. Findings are highly robust, including to the use of geography and colonial history as instruments for trade and entry costs. Both the signs and relative magnitudes of these effects are consistent with predictions from a heterogeneous firms model of trade with asymmetric costs. 2012-06-07T14:54:44Z 2012-06-07T14:54:44Z 2007-09 http://documents.worldbank.org/curated/en/2007/09/8367098/trade-costs-barriers-entry-export-diversification-developing-countries http://hdl.handle.net/10986/7385 English Policy Research Working Paper; No. 4368 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
CDI DIO ECONOMIC DEVELOPMENT ELASTICITY ID INLAND TRANSPORT INTERNATIONAL BANK INTERNATIONAL TRANSPORT JA MT RCD TRADE FACILITATION |
| spellingShingle |
CDI DIO ECONOMIC DEVELOPMENT ELASTICITY ID INLAND TRANSPORT INTERNATIONAL BANK INTERNATIONAL TRANSPORT JA MT RCD TRADE FACILITATION Dennis, Allen Shepherd, Ben Trade Costs, Barriers to Entry, and Export Diversification in Developing Countries |
| relation |
Policy Research Working Paper; No. 4368 |
| description |
This paper finds that a 1 percent
reduction in the cost of exporting or the cost of
international transport is associated with an export
diversification gain of 0.3 percent or 0.4 percent
respectively. Lower domestic market entry costs can also
promote diversification, but the elasticity is weaker
(-0.1). To obtain these results, the authors construct new
measures of export diversification for 118 developing
countries using highly detailed 8-digit mirror data from the
European Union. The analysis also incorporates new export
cost data from the World Bank's Doing Business
database, covering document preparation, inland transport,
administrative fees, and port/customs charges. Findings are
highly robust, including to the use of geography and
colonial history as instruments for trade and entry costs.
Both the signs and relative magnitudes of these effects are
consistent with predictions from a heterogeneous firms model
of trade with asymmetric costs. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Dennis, Allen Shepherd, Ben |
| author_facet |
Dennis, Allen Shepherd, Ben |
| author_sort |
Dennis, Allen |
| title |
Trade Costs, Barriers to Entry, and Export Diversification in Developing Countries |
| title_short |
Trade Costs, Barriers to Entry, and Export Diversification in Developing Countries |
| title_full |
Trade Costs, Barriers to Entry, and Export Diversification in Developing Countries |
| title_fullStr |
Trade Costs, Barriers to Entry, and Export Diversification in Developing Countries |
| title_full_unstemmed |
Trade Costs, Barriers to Entry, and Export Diversification in Developing Countries |
| title_sort |
trade costs, barriers to entry, and export diversification in developing countries |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/09/8367098/trade-costs-barriers-entry-export-diversification-developing-countries http://hdl.handle.net/10986/7385 |
| _version_ |
1764402446308737024 |