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How Does Trade Facilitation Affect International Trade?

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  • Chahir Zaki

    (Cairo University, Cairo, Egypt.)

Abstract

This article evaluates the effect of different aspects of trade facilitation in developed and developing countries on bilateral trade through an augmented gravity model and uses the latter to estimate ad valorem equivalents (AVEs) of administrative barriers to trade. The results show that a multitude of trade facilitation variables including internet, bureaucracy, corruption and geography affect the transaction times to import and to export. However, the time to import has a higher negative impact on trade when compared with the time to export. Another important finding is that both facilitation and liberalization of trade are complements rather than substitutes. Finally, when sectoral characteristics are taken into account, some perishable, seasonal and high-value-added products appear to be more sensitive to transaction time than other products. These results are also confirmed by the values of the AVEs.

Suggested Citation

  • Chahir Zaki, 2015. "How Does Trade Facilitation Affect International Trade?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(1), pages 156-185, January.
    • Handle: RePEc:pal:eurjdr:v:27:y:2015:i:1:p:156-185
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    Citations

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    Cited by:

    1. Bryan Roberts & Fynnwin Prager & Charles Baschnagel & Adam Rose & Brett Shears, 2021. "The economic benefits of trade facilitation: U.S. Customs and Border Protection’s Centers of Excellence and Expertise programme," The World Economy, Wiley Blackwell, vol. 44(2), pages 346-366, February.
    2. Valenzuela-Klagges, Bárbara & Corvalán-Quiroz, Alejandro & Fuenzalida-O'Shee, Darcy, 2018. "Trade facilitation and its effects on Chile’s bilateral trade between 2006 and 2014," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    3. Biswas, Trina & Kennedy, P. Lynn, 2018. "The Role of E-governance on Bilateral Agricultural Trade," 2018 Annual Meeting, August 5-7, Washington, D.C. 274273, Agricultural and Applied Economics Association.
    4. Zühal Kurul, 2023. "Hard and soft factors of trade facilitation and export diversification: Evidence for developing and the least developed countries," The Developing Economies, Institute of Developing Economies, vol. 61(2), pages 75-116, June.
    5. Fatima Olanike Kareem & Inmaculada Martínez-Zarzoso & Bernhard Brümmer, 2023. "What Drives Africa’s Inability to Comply with EU Standards? Insights from Africa’s Institution and Trade Facilitation Measures," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(4), pages 938-973, August.
    6. Mamta Kumari & Nalin Bharti, 2021. "Linkages Between Trade Facilitation and Governance: Relevance for Post-COVID-19 Trade Strategy," Millennial Asia, , vol. 12(2), pages 162-189, August.
    7. Wassie, Mengistu Alamneh & Kornher, Lukas & Zaki, Chahir, 2024. "Revisiting the Impact of Trade Facilitation Measures in Africa: Structural Gravity Estimation and Ad Valorem Tariff Equivalents," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344296, International Association of Agricultural Economists (IAAE).
    8. Pousseni Bakouan & Mahamadou Diarra & Idrissa M. Ouedraogo, 2024. "How Can Tariff Elimination and Trade Facilitation Affect East African Economies?," Foreign Trade Review, , vol. 59(1), pages 117-145, February.
    9. Yuanhong Hu & Min Jiang & Sheng Sun & Yixin Dai, 2022. "Does Trade Facilitation Promote Export Technological Sophistication? Evidence From the European Transition Countries," SAGE Open, , vol. 12(2), pages 21582440221, June.
    10. Halit Yanikkaya & Zeynep Aktas Koral, 2017. "Assessing the Determinants of Customs-Related Transaction Costs in Turkey," Working Papers 2017-02, Gebze Technical University, Department of Economics.
    11. Kemal Türkcan & Socrates Kraido Majune, 2022. "Logistics infrastructure and export survival in European Union countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 509-535, May.

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