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An Empirical Study on the Impact of Trade Facilitation on Chinese Exports to South American Countries: The Case of Commodities and Electronic Products

In: Innovation-Driven Business and Sustainability in the Tropics

Author

Listed:
  • Xinru Luan

    (Independent Scholar)

  • Jungsuk Kim

    (Sejong University)

  • Sook Rei Tan

    (James Cook University)

  • Jacob Wood

    (James Cook University)

Abstract

After the significant reduction in tariffs, trade flows are more influenced by other factors, one of which is trade facilitation, and it has been increasingly researched and mentioned. This study attempts to assess the impact of South American countries’ logistics performance on exports of Chinese products. We use the Logistics Performance Index, tariffs, and FTA signature as comprehensive indicators to reveal the level of trade facilitation. To investigate the impact, the gravity model with Feasible Generalized Least Square was conducted. We found that LPI has a positive correlation with China’s exports in relation to all commodity trade and E-products at 2-digit HS code level. However, tariffs and signing agreements have mixed effects. For E-products at 4-digit HS code level, LPI has no significant impact on trade, while signing an FTA can lead to a significant decrease in the export of China.

Suggested Citation

  • Xinru Luan & Jungsuk Kim & Sook Rei Tan & Jacob Wood, 2023. "An Empirical Study on the Impact of Trade Facilitation on Chinese Exports to South American Countries: The Case of Commodities and Electronic Products," Springer Books, in: Emiel L. Eijdenberg & Malobi Mukherjee & Jacob Wood (ed.), Innovation-Driven Business and Sustainability in the Tropics, chapter 0, pages 29-52, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-2909-2_3
    DOI: 10.1007/978-981-99-2909-2_3
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