Trade Facilitation and Economic Development: Measuring the Impact

No AccessPolicy Research Working Papers21 Jun 2013Trade Facilitation and Economic Development: Measuring the ImpactAuthors/Editors: John Wilson, Catherine Mann, Tsunehiro OtsukiJohn Wilson, Catherine Mann, Tsunehiro Otsukihttps://doi.org/10.1596/1813-9450-2988SectionsAboutPDF (0.2 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:Wilson, Mann, and Otsuki 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. This paper—a product of Trade, Development Research Group—is part of a larger effort in the group to explore the link between trade and development. Previous bookNext book FiguresreferencesRecommendeddetailsCited byThe nexus between infrastructure development, economic growth, foreign direct investment, and trade: an empirical investigation from China's regional trade dataSN Business & Economics, Vol.2, No.728 June 2022Research on the Impact of the Level of Investment Facilitation in the Host Country on China's OFDI—Based on Data from Countries Along the "The Belt and Road"5 May 2022Challenges of Customs Law during the Paradigm of "Facility and Security" in International TradeBiałostockie Studia Prawnicze, Vol.26, No.517 December 2021Methodological approaches to determining the impact of barriers on international tradeMezhdunarodnaja jekonomika (The World Economics), No.921 September 2021IMPACTO DA FACILITAÇÃO DE COMÉRCIO NO MERCOSUL EM COMPARAÇÃO À UNIÃO EUROPEIA: UMA ANÁLISE ATRAVÉS DO MODELO GRAVITACIONALRevista UNEMAT de Contabilidade, Vol.9, No.1723 October 2020The Belt and Road Initiative's Impact on Textile and Clothing Supply Chains in Asia: Views from Hong Kong Industrial Stakeholders3 January 2020Looking Back to Look Forward: Setting Future Research Agenda for International Business in Textiles and Clothing IndustryJournal of International Logistics and Trade, Vol.17, No.131 March 2019Trade in Services for Growth and Structural Transformation in West Africa6 April 2019The Economic Benefits of Intellectual Property Rights in the Trans-Pacific PartnershipSSRN Electronic Journal'Implications de la mise en oeuvre de llAccord sur la facilitation des changes de llOMC pour le Vietnam' (Implications of Implementing the WTO Trade Facilitation Agreement for Vietnam)SSRN Electronic JournalThe Time Cost of Documents to TradeThe International Trade Journal, Vol.29, No.44 June 2015The challenges of economic integration: the case of shipping in ASEAN countriesThe Pacific Review, Vol.28, No.416 February 2015Competitiveness and macroeconomic impacts of reduced wait times at U.S. land freight border crossingsTransportation Research Part A: Policy and Practice, Vol.78Research Methodology19 October 2014How Does Trade Facilitation Affect International Trade?The European Journal of Development Research, Vol.27, No.121 August 2014The further the distance, the closer the ties.Journal of Governance and Regulation, Vol.4, No.11 January 2015The impact of trade facilitation factors on South Africa's exports to a selection of African countriesDevelopment Southern Africa, Vol.31, No.412 May 2014The challenges of developing a competitive logistics industry in ASEAN countriesInternational Journal of Logistics Research and Applications, Vol.17, No.427 November 2013An input-output-based methodology to estimate the economic role of a port: The case of the port system of the Friuli Venezia Giulia Region, ItalyMaritime Economics & Logistics, Vol.15, No.225 April 2013The Role of Trade Facilitation in Central AsiaEastern European Economics, Vol.50, No.415 November 2012Translating trade and transport facilitation into strategic operations performance objectivesSupply Chain Management: An International Journal, Vol.17, No.2Determinants of National Innovation Systems: Policy implications for developing countriesInnovation, Vol.14, No.117 December 2014The Challenge of Globalization for the Logistics Industry: Evidence from IndonesiaTransportation Journal, Vol.51, No.1Production sharing and trade flows: A comparative analysis of Japan and the USJournal of Asian Economics, Vol.22, No.5The impact of trade costs on exports: An empirical modelingEconomic Modelling, Vol.28, No.3Risk management of Taiwan's maritime supply chain securitySafety Science, Vol.49, No.3Liberalisation of logistics services: the case of ASEANInternational Journal of Logistics Research and Applications, Vol.14, No.116 February 2011Causal nexus between the transport and logistics sector and trade: The case of AustraliaTransport Policy, Vol.17, No.3Simultaneous estimation of income and price elasticities of export demand, scale economies and total factor productivity growth for BrazilApplied Economics, Vol.40, No.22Liner Shipping Connectivity and Port Infrastructure as Determinants of Freight Rates in the CaribbeanMaritime Economics & Logistics, Vol.10, No.1-27 March 2008In Search of Optimised Regional Trade Agreements and Applications to East AsiaThe World Economy, Vol.30, No.5Maritime Logistics and Global Supply Chains: Towards a Research AgendaMaritime Economics & Logistics, Vol.8, No.124 February 2006Economic Costs and Benefits of Combating Terrorism in the Transport SectorAsian-Pacific Economic Literature, Vol.19, No.1Trade Facilitation and a Northeast Asian Free Trade ArrangementInternational Area Review, Vol.8, No.18 September 2016Free Trade Areas in East Asia: Discriminatory or Non‐discriminatory?The World Economy, Vol.28, No.114 January 2005Global Logistics Indicators, Supply Chain Metrics, and Bilateral Trade PatternsSSRN Electronic Journal View Published: March 2003 Copyright & Permissions Related RegionsEast Asia & PacificLatin America & CaribbeanRelated CountriesIndonesiaRussian FederationSingaporeUnited StatesRelated TopicsEnvironmentIndustryInternational Economics & TradeLaw and DevelopmentMacroeconomics and Economic GrowthPrivate Sector DevelopmentPublic Sector DevelopmentTransport KeywordsCOST SAVINGSECONOMIC DEVELOPMENTECONOMICSEFFICIENCYEMPIRICAL RESEARCHENVIRONMENTEQUILIBRIUMHUMAN DEVELOPMENTINCOMEINFORMATIONNEEDPOLICIESPRICESPRODUCTIVITYQUOTASREGULATIONSSTANDARDSTARIFFSTECHNOLOGYTRADE PDF downloadLoading ...