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Trade Policy, Trade Costs, and Developing Country Trade

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  • Hoekman, Bernard
  • Nicita, Alessandro

Abstract

This paper reviews some indices of trade restrictiveness and trade facilitation and compares the trade impact of different types of trade restrictions applied at the border with the effects of domestic policies that affect trade costs. Based on a gravity regression framework, the analysis suggests that tariffs and non-tariff measures continue to be a significant source of trade restrictiveness for low-income countries despite preferential access programs. The results also suggest that behind-the-border measures to improve logistics performance and facilitate trade are likely to have a comparable, if not larger, effect in expanding developing country trade, especially exports.

Suggested Citation

  • Hoekman, Bernard & Nicita, Alessandro, 2011. "Trade Policy, Trade Costs, and Developing Country Trade," World Development, Elsevier, vol. 39(12), pages 2069-2079.
    • Handle: RePEc:eee:wdevel:v:39:y:2011:i:12:p:2069-2079
    DOI: 10.1016/j.worlddev.2011.05.013
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    More about this item

    Keywords

    TARIFFS; nontariff measures; trade facilitation; logistics; economic development; DOHA Round;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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