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Trade effects of trade facilitation revisited

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  • Masood, Amjad
  • Martínez-Zarzoso, Inmaculada

Abstract

This paper is the first to evaluate the effect of trade facilitation measures on bilateral exports considering intra-national trade. The measures used are based on the United Nations Global Survey on Digital and Sustainable Trade Facilitation for 2015, 2017, and 2019. The methodology consists of estimating a structural gravity model that includes domestic sales in addition to international trade, which allows identification of country-specific trade facilitation effects, while fully accounting for multilateral resistances to trade and for globalization effects. The findings show a positive effect of trade facilitation measures on bilateral trade. The effects are heterogeneous and vary with the level of development of the exporters, generally being stronger for non-OECD countries.

Suggested Citation

  • Masood, Amjad & Martínez-Zarzoso, Inmaculada, 2024. "Trade effects of trade facilitation revisited," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523005037
    DOI: 10.1016/j.econlet.2023.111477
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    More about this item

    Keywords

    Trade facilitation; Digitization; Bilateral trade; OECD; Structural gravity model;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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