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Trade costs in the India-Mekong Subregion: Identifying Policy Priorities for Trade Facilitation

Author

Listed:
  • Yann Duval
  • Chorthip Utoktham

    (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP))

Abstract

This paper explores the trade facilitation performance of India and Mekong countries using a new measure of bilateral comprehensive trade costs, complemented by a review of specific trade policy and trade facilitation-related indicators. A model of comprehensive trade costs is then developed and estimated using these specific indicators in an effort to identify policies and measures that have a significant effect on trade costs, and to prioritize them. The trade costs between India and Mekong countries are found to be high: from 20% to 100% higher than those prevailing among Mekong countries. However, the fact that India, China, Thailand, and most of the other India-Mekong countries made more progress in reducing trade costs with each other than with developed countries - such as Japan and the USA - is encouraging, showing signs of slow but steady improvements in regional connectivity. Econometric results suggest that countries should prioritize policies aimed at further developing maritime and ICT services to reduce trade costs.

Suggested Citation

  • Yann Duval & Chorthip Utoktham, 2011. "Trade costs in the India-Mekong Subregion: Identifying Policy Priorities for Trade Facilitation," Working Paper Series 411, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • Handle: RePEc:unt:wpaper:swp411
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    File URL: http://www.unescap.org/tid/publication/swp411.pdf
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    References listed on IDEAS

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    Cited by:

    1. Jean-François Arvis & Yann Duval & Ben Shepherd & Chorthip Utoktham, 2012. "Trade Costs in the Developing World:1995 – 2010," Working Papers 12112, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    2. Nguyen, Cuong, 2013. "Poverty, Inequality and Trade Facilitation in Low and Middle Income Countries," MPRA Paper 50312, University Library of Munich, Germany.

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    More about this item

    Keywords

    trade costs; trade facilitation; measures; policy; India; Mekong; tariff; non-tariff; regional connectivity; maritime; ICT; Information and Communication Technology;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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