Abstract

This paper is the first to evaluate the effect of trade facilitation measures on bilateral exports considering intra-national trade. The measures used are based on the United Nations Global Survey on Digital and Sustainable Trade Facilitation for 2015, 2017, and 2019. The methodology consists of estimating a structural gravity model that includes domestic sales in addition to international trade, which allows identification of country-specific trade facilitation effects, while fully accounting for multilateral resistances to trade and for globalization effects. The findings show a positive effect of trade facilitation measures on bilateral trade. The effects are heterogeneous and vary with the level of development of the exporters, generally being stronger for non-OECD countries.

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