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Border and Behind-the-Border Trade Barriers and Country Exports

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  • Mr. Azim M Sadikov

Abstract

How do signatures required for exporting and business registration procedures affect the volume and composition of country's exports? To answer this question, I develop a model where a country can export two types of products: differentiated and homogeneous. I show that export signatures and registration procedures reduce overall exports by increasing transaction costs. The impact, however, varies across goods according to the product's degree of differentiation- the lack of price data on differentiated products due to their heterogeneity makes them more sensitive to export signatures. Regressions show that each extra signature exporters have to collect before a shipment can take place reduces aggregate exports by 4.2 percent. The impact is large, equivalent to raising importer's tariff by 5 percentage points. Furthermore, each signature lowers exports of differentiated products by 4-5 percent more than exports of homogeneous goods. I find evidence that business registration procedures affect exports of differentiated products only.

Suggested Citation

  • Mr. Azim M Sadikov, 2007. "Border and Behind-the-Border Trade Barriers and Country Exports," IMF Working Papers 2007/292, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2007/292
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    2. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    3. Imran Ur Rahman & Mohsin Shafi & Liu Junrong & Enitilina Tatiani M.K. Fetuu & Shah Fahad & Buddhi Prasad Sharma, 2021. "Infrastructure and Trade: An Empirical Study Based on China and Selected Asian Economies," SAGE Open, , vol. 11(3), pages 21582440211, July.
    4. Maria Persson, 2013. "Trade facilitation and the extensive margin," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(5), pages 658-693, August.
    5. Nguyen, Cuong, 2013. "Poverty, Inequality and Trade Facilitation in Low and Middle Income Countries," MPRA Paper 50312, University Library of Munich, Germany.
    6. International Finance Corporation & World Bank, 2008. "Doing Business 2009 : Comparing Regulation in 181 Economies," World Bank Publications - Books, The World Bank Group, number 6313.
    7. Mauricio Vaz Lobo Bittencourt & Paula Andrea Mosquera Agudelo, 2021. "The impacts of the exchange rate volatility on colombian trade with its main trade partners," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 18(2), pages 57-81, Julio-Dic.
    8. Vinícios Poloni Sant' Anna & Sérgio Kannebley Júnior, 2016. "Port Efficiency And Brazilian Exports: A Quantitative Assessment Of The Impact Of Port Procedures Time," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 125, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    9. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-33.
    10. Sangeeta Khorana & Nicholas Perdikis & May T. Yeung & William A. Kerr, 2010. "Bilateral Trade Agreements in the Era of Globalization," Books, Edward Elgar Publishing, number 13719.
    11. Paulina Y. Amtiran, 2022. "Cross Border Trade: Strategy and Policy (Evidence from Cross-Border Trade in the Republic of Indonesia and the Republic Democratic of Timor Leste)," GATR Journals jber230, Global Academy of Training and Research (GATR) Enterprise.

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