Trade Facilitation and Economic Development: Measuring the Impact

By John S. Wilson, Catherine L. Mann, T. Otsuki. 2003

232 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Industrial and Manufacturing Engineering

View Paper: https://www.semanticscholar.org/paper/fb6b3afce41bcceb533777562ce87a83b53cafd8

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. J. Hoffmann
2. G. Wilmsmeier
3. Olaf M. Merk

In Industrial and Manufacturing Engineering

1. J. Hoffmann
2. G. Wilmsmeier
3. Olaf M. Merk

Citations in the corpus

• Aid-for-trade facilitation (2009, unknown): “Our aggregations are chosen to better match the trade facilitation reforms in the literature typified by Wilson, Mann, Otsuki (2003, 2005) .”
• Liner Shipping Connectivity and Port Infrastructure as Determinants of Freight Rates in the Caribbean (2008, background): “Wilson et al (2003) find that port 131 Maritime Economics & Logistics efficiency has a strong and significant impact on bilateral trade flows in the Asia Pacific region.”
• The Economic Impact of Trade Facilitation (2005, background): “See also WTO (1998) G/L/244.”