The effect of trade facilitation measures on import in developing countries

Abstract

ABSTRACT A high level of imports indicates robust domestic demand and a growing economy, and trade facilitation as one of the important trade methods that insure efficiency of trade movement between the borders. 11 trade facilitation indicators were used from 40 selected developing countries from different regions over a period from 2015 to 2019, GMM was used to examine how trade facilitation impacts the economy and imports of a country. In our study, 10 trade facilitation indicators recorded a positive impact on imports. The findings of this study indicate that it would be progressive for developing nations to adopt a well-functioning trade facilitation measures and must work on reviewing their law and policies to adopt the new knowledge of facilitating things in line with current best practices and conduct a reformation of existing policies and national development strategies for trade to further their economic enhancement agenda, which can shorten clearance time and increase the import volume.