Effects Of Trade Facilitation Research Articles

An inquiry into the effect of trade facilitation on China's digital product exports to countries along the "Belt and Road"

We assess the trade facilitation level of 141 countries involved in the "Belt and Road" by constructing 4 primary indicators and 18 secondary indicators, and use the trade gravity model to explore its impact on China's digital product exports. The research results show that the overall level of trade facilitation is relatively low, and there is still plenty of room for improvement. The estimation results show that trade facilitation does improve the performance of China's digital exports, especially in terms of infrastructure construction and customs environment, while the impact of regulatory environment and finance & e-commerce on export performance is limited. The findings of this paper imply that promoting the continuous improvement in the level of trade facilitation is important for promoting China's digital product exports.

Trade Facilitation and Global Value Chain Participation: Cross-country Analysis

In this article, we examine the role of trade facilitation in fostering firm participation in global value chains (GVCs). We use cross-sectional data for 115 economies spanning 2006–2018 sourced from World Bank Enterprise Surveys. We employ four trade indicators which are as follows: customs, regulation quality, loans and digitalization proxying for trade facilitation measures and we correct for reverse causality using the instrumental variable approach. Our empirical findings highlight that customs requirements deter GVC participation of the firm. Further, adhering to government regulations, having access to loans and digital communication adoption fosters supply chain integration of the firm. The present study also finds favourable heterogenous effects of trade facilitation on GVC participation of less productive firms and larger firms. Our findings are robust to alternative methods of endogeneity correction and GVC definitions. JEL Codes: F1, F19, F14

Trade effects of trade facilitation revisited

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.

The effects of trade facilitation on Vietnam's trade relationship with ASEAN countries

The effects of trade facilitation on Vietnam's trade relationship with ASEAN countries

Effects of Trade Facilitation on Trade Costs in Developed and Developing Countries: PPML Analysis

Trade facilitation reduces trade costs and eases the movement of goods and services. Studies have shown that trade flows increased by improving the trade facilitation process and reducing trade costs. The study aims to estimate the effects of trade facilitation enhancement on trade costs in 111 developed and developing countries over the 2008 to 2014 period using the Poisson-Pseudo Maximum Likelihood (PPML) estimator. The findings show that trade facilitation components such as border administration, business environment and transport and communication infrastructure reduce trade costs. This trade facilitation should have helped alleviate the effects of the financial recession and eased world trade recovery. On the other hand, the study finds that additional market access increases trade costs. The most important finding is that the effectiveness of trade facilitation is higher when more countries engage in trade and when those countries are together participating in trade facilitation.

Customs Cooperation Development Programme as a Promising Instrument for Facilitating Russian-Chinese Trade

The problem of insufficient development of instruments for facilitating Russian-Chinese trade is examined in the article. A promising tool for facilitating trade is proposed - a programme for the development of Customs cooperation between the Russian Federation and P.R. China. The concept of the programme, the mechanism for the implementation of the programme and the methodology for assessing the effectiveness of the implementation of the programme have been developed as elements of the proposed tool. The concept of the programme has been developed as a scenario for the formation of end-to-end customs control system over the supply chain of goods, which is a comprehensive tool for facilitating trade and ensuring the single submission of documents and information by participants in foreign economic activity and the application of customs control forms by the Customs administrations of the countries of departure and destination. The programme implementation mechanism is based on the development and distribution of the functions of existing institutions and subjects of cooperation related to the development and practical implementation of the elements of end-to-end customs control system in the supply chain, which ensures a high level of organization of interaction between subjects without creating additional institutions of cooperation. The methodology for evaluating the effectiveness of the programme implementation allows to calculate and compare the real and potential effects of trade facilitation as a result of the formation end-to-end customs control system.

Trade Facilitation and China’s Agricultural Products Exports: Empirical Evidence from Japan and Korea

Purpose – This paper analyzes the relationship between trade facilitation and agricultural products exports and estimates the effects of trade facilitation in importing countries on Chinese agricultural products exports, which is of great significance for promoting agricultural trade between China,Japan and Korea and the governments of the three countries to formulate targeted trade facilitation policies. Design/methodology – Based on Wilson (2003) theoretical framework, this paper sets up its own trade facilitation level measurement system by involving four primary indicators and fifteen secondary indicators to evaluate the trade facilitation levels of Japan and Korea from 2011 to 2018 respectively. The paper selected the data on China s agricultural exports at the HS4 level from 2011-2018 and used a fixed-effects model to estimate the effect of changes in trade facilitation levels in trading partner countries on China s agricultural trade. Findings – Our main findings can be summarized as follows: the level of trade facilitation in importing countries has a significantly positive effect on China’s agricultural exports. The higher the level of trade facilitation in trading partner countries, the more Chinese agricultural exports trade, i.e. for every 1 percentage point increase in the level of trade facilitation, the volume of exports will increase by 2.299%.The sub-sample test shows that China s main agricultural products exported to Japan and Korea, such as aquatic products, vegetables, fruits and other perishable fresh products, are particularly significantly affected by the level of trade facilitation. Originality/value – First, from the innovation of the research perspective, which is different from the analysis of the existing paper on the overall trade facilitation of all traded commodities. This article is based on the close trade relations between China, Japan and Korea, and the particularity of agricultural products, from the perspective of China’s agricultural exports to Japan and Korea, discuss the impact of importing countries—Japan and Korea’s trade facilitation levels on China’s agricultural exports;Secondly, in this paper, the hierarchical data of the HS4 quartile is used to avoid the information loss of the industry, and to analyse the impact of the importing country’s trade facilitation level on the export of different types of agricultural products more scientifically.

Trade facilitation promoted the inbound tourism efficiency in Japan

This study explores the intrinsic correlation between trade facilitation and the inbound tourism efficiency in Japan based on the data from 2011 to 2019. According to the data from JNTO, Japan's inbound tourism showed a strong dependence on the Asian market, the growth rate of inbound tourists in Europe, America and Oceania increased in recent years. The COVID-19 seriously hindered the Japan's inbound tourism development. The fixed-effect regression indicates that trade facilitation promoted inbound tourism efficiency in markets of different types. The positive effect of trade facilitation on sightseeing market was most significant in Asia. While in Europe, America and Oceania, the inbound business market benefited most from trade facilitation. Trade facilitation amplified the positive effect of Japan's air transportation capacity, international tourism income and visa-free policy on the inbound tourism efficiency, and effectively buffered the negative impact of natural disasters. With regard to the estimated results of sub-indicators of trade facilitation, the improvement of infrastructure, government efficiency, customs environment and technological level all contributed to the increase in Japan's inbound tourism efficiency.

Can Trade Facilitation Prevent the Formation of Zombie Firms? Evidence from the China Railway Express

AbstractUsing data on firms listed on Chinese A‐share markets from 2009 to 2017, this paper applies the difference‐in‐difference model to test the effect of trade facilitation on preventing the formation of zombie firms. We find that the China Railway Express (CRE) significantly prevented the formation of such firms. Mechanism tests show: (i) the CRE has accelerated the speed of sales, which increased the overseas sales revenue of firms; (ii) the economies of scale and the capital accumulation effect caused by the CRE can help increase firms’ solvency and development ability. Heterogeneity analysis indicates that the effect of the CRE on preventing the formation of zombie firms is mainly reflected in non‐state‐owned firms, firms in highly competitive industries, and firms in the eastern region of China. We suggest that China should continue to promote trade facilitation by expanding the CRE and strengthening the market's dominant role in preventing the formation of zombie firms. Disadvantaged firms should seize the development opportunities brought by the CRE.

Export Effect of Trade Facilitation in Asian “Belt and Road” Coastal Countries on China's Cross-border E-commerce

Li, B.J., 2020. Export effect of trade facilitation in Asian “Belt and Road” coastal countries on China's cross-border e-commerce. In: Guido Aldana, P.A. and Kantamaneni, K. (eds.), Advances in Water Resources, Coastal Management, and Marine Science Technology. Journal of Coastal Research, Special Issue No. 104, pp. 628–632. Coconut Creek (Florida), ISSN 0749-0208.As the “Belt and Road” initiative was put forward, the volume of trading economy in countries along the routes has increased significantly, among which Asian countries have gained the highest trade activity. Thus it is of great import to examine the level of trade facilitation for Asian countries along the routes, so as to prop up the industry of cross-border e-commerce (CBEC) in China. This paper selects four first-grade indexes of infrastructure, rules and regulations, customs environment and e-commerce, and then further refining them into 12 second-grade indexes for establishing a trade facilitation evaluation system; by adopting the panel data within ten years from 2009 to 2018, and in the meantime, based on the extended gravity model, the paper verifies that trade facilitation produces an obvious positive effect on China's CBEC export.

RETRACTED: Evaluation of the promoting effect of trade facilitation of importing countries to agricultural product export of China

Based on the total cost theory of international trade, this article analyzes the mechanism of trade facilitation to agricultural products export, tests the actual promotion effect of trade facilitation to export of Chinese agricultural products by the United States, Japan, South Korea and 28 EU countries based on the extended gravity model. The project is designed by students and teachers .The research shows that the reduction of cross-border time has a positive effect on China’s agricultural products export, but the promoting effect is weakened by the negative impact of technical trade measures for agricultural products. Further research shows that the effect of cross-border time reduction on Chinese agricultural products export is heterogeneous. Due to the negative impact of technical trade measures for agricultural products, the cross-border time reduction in developed countries has a strong role in promoting China’s agricultural exports; while the cross-border time reduction in non-developed countries has no significant role to promote Chinese agricultural products export, and the technical trade measures involving agricultural product have no inhibiting effect on the promotion of cross-border time reduction. The empirical test also proves the effectiveness of the above research project. Therefore, for the aim to strengthen the export of Chinese agricultural products to the above-mentioned countries, China should not only take advantage of the positive impact of trade facilitation, but also effectively resolve the negative impact of technical trade measures for agricultural products. At the end of this paper, some suggestions and countermeasures are put forward.

Modelling and quantifying the effects of trade facilitation on trade and international transport costs using the logistics performance index

In order to investigate and analyse the factors behind the promotion of international trade, we propose the logistics performance index (LPI) as a way to measure the facilitation of international trade. We suggest modelling transportation costs and their impact on trade according to a gravity approach. The impact of the LPI appears to be robust to the preferred specification (basic or with fixed effects) and to the different implemented econometric techniques (OLS, Tobit and PMLT), to the extent that we always obtain a significantly positive impact of the LPI for both the importing and exporting countries. Our results reveal two major mechanisms: 1) an improvement of the logistics performance index leads first to a reduction in transportation costs; 2) it further results in the expansion of trade. Econometric tests also show that a 10% increase in the index positively affects the probability of trade occurring, with it increasing by 30% in the importing country and by 40% in the exporting one.

Modelling and quantifying the effects of trade facilitation on trade and international transport costs using the logistics performance index

Modelling and quantifying the effects of trade facilitation on trade and international transport costs using the logistics performance index

The Effects of Trade Facilitation on Trade Performance in Africa

Institutional trade barriers constitute substantial constraints for a number of exporters and importers. These barriers are multidimensional and they impede trade flows and trade performance of many developing countries, including African countries. In particular, the International Trade Centre through its series of business surveys has identified that a myriad number of businesses within Africa are affected by these barriers. Notwithstanding, there is little empirical knowledge on how they interact and affect trade flows within Africa. In this paper, we assess the effects of trade facilitation measures and their combined effect (using principal component analysis) on trade performance in a sample of 52 African countries within a structural gravity model framework for the period 2006–2015. The results suggest that trade facilitation improves trade performance in Africa; the better the level of trade facilitation, the larger the extent of trade flows. From a policy perspective, reducing trade costs across borders remains key to improve trade performance in Africa.

Trade Facilitation and GVC Participation：An Analysis Based on the World Input-Output Database

Under the background of economic anti-globalization and the escalation of Sino-US trade frictions, it is particularly important to continue to promote trade facilitation. From the hard environment” of trade facilitation, the construction of infrastructure such as transportation can reduce transaction costs, reduce the uncertainty of the trading cycle, make the order, stocking and shipping cycle more predictable, and greatly shorten the export side and the distance of the final demand of the host country. From the soft environment” of trade facilitation, the red tape” in the trade process has caused incalculable losses to the value of the product. The effect of trade facilitation has been confirmed by many scholars, but the research about the effect of trade facilitation on GVC participation is rare.From the perspective of research, this paper focuses on the GVC participation effect of trade facilitation from the perspective of national heterogeneity, industry heterogeneity and regional value chains, and finally draws a more policy-meaningful conclusion.This paper uses the entropy method and the KWW expansion method to measure the degree of trade facilitation and participation, and uses the OLS and the two-stage OLS to conduct empirical tests. The raw data for the core explanatory variables in this paper is derived from the World Input-Output Database（WIOD）. The main explanatory variables are from World Bank data and the WEF database.The main conclusions are as follows: firstly, trade facilitation enhances the depth of a country’s GVC participation; secondly, trade facilitation has a structural impact on GVC participation. Compared with the hard environment” of trade facilitation, the current improvement of the soft environment” of trade facilitation has a more prominent effect on GVC participation, especially in developing countries. From the perspective of industry heterogeneity, the impact of trade facilitation on GVC participation in sectors with higher asset specificity is more obvious. From the perspective of regional value chains, trade facilitation inhibits the regional fragmentation” of value chains and promotes the formation of GVCs.Therefore, we should take the enforcement of the Bali Agreement on Trade Facilitation as a chance to improve the border management, trying to establish a single window”, promote paperless, automated and intelligent customs clearance, and improve the response speed of the international production division chain. Meanwhile, we should improve the business environment by effectively reducing the cost of compliance in international trade, accelerating intermediary flows, and optimizing the allocation of resources. At last, we should speed up the negotiation of WTO cross-border electricity suppliers, formulate multilateral rules for cross-border electricity providers, and cultivate new trade formats in the GVC system, so as to deepen the division of work in GVCs.

The Effects of Trade Facilitation on Indonesian Fisheries Export

The growth in the volume and export value of fishery subsector shows the importance role of its sector to Indonesian economy. The export performance is influenced by many aspects, including trade facilitation. The problem faced by Indonesia is the low quality of trade facilitation resulting in relatively high trade costs, and this will affect the export performance. This research aims to analyze the effect of trade facilitation as well as other related variables on the Indonesia export in the fishery subsector, shrimp commodity exports, and export of tuna, mackerel tuna, as well as skipjack tuna. This study used panel data with ten years time series from 2007 to 2016, and the cross section data included ten major export destination countries. The data were analyzed using the gravity model with fixed effect estimation method. The study results showed that trade facilitation and other related variables had an effect on Indonesian fishery, shrimp, and tuna, mackerel tuna, as well as skipjack tuna exports. Based on the research results, Indonesian fishery exports can be improved by, firstly improving capacity and quality port infrastructure. Secondly, improving capacity and quality of electricity supply. Thirdly, the institutional quality is primarily concerned with ethics and corruption, and fourthly, the efficiency of trade across border needs to be improved in the hope of increasing the Indonesian export in the fishery subsector. Keywords: export, fishery, gravity model, trade facilitation

Trade facilitation and its effects on Chile’s bilateral trade between 2006 and 2014

This study analyses the effects of trade facilitation on Chilean exports in 2006-2014. It reviews evidence and studies on trade facilitation and its effects, mainly in South America; and it analyses Chile’s export basket. An extended gravity model is then estimated for Chile’s bilateral trade flow with 89 countries, to measure the effect of trade facilitation during the period analysed. The estimation is performed using static panel data with fixed, random and dynamic effects. The key results show that the estimation that best describes Chile’s export behaviour is that which uses static panel data with random and dynamic effects and two lags of the dependent variable (exports). They show that per-container export costs have a negative effect on this trade flow.

THE EFFECT OF TRADE FACILITATION ON TRADE MARGIN OF 8 ASEAN-CHINA FREE TRADE AREA COUNTRIES (ACFTA): A GRAVITY MODEL APPROACH

Trade facilitation is an effort of simplification and harmonization of international trade procedures. Trade facilitation that manifested in the form of policy packages that aim to reduce trade costs and improve export growth. Export growth can be sourced from the level of diversity of exported goods (extensive margin) and the volume of exported goods (intensive margin). This study aims to analyze the effect of trade facilitation on the extensive and intensive margin of trade eight member countries of ACFTA during the years 2006-2014. Trade facilitation indicators used in this study consisted of exporters and importers port efficiency. This study uses gravity model and estimation techniques Random Effect Model. The results showed that exporter port efficiency have a positive and significant effect on the extensive margin while importer port efficiency has a positive and significant effect on the intensive margin.

Effects of Trade Facilitation on Inequality: A Case Study of Sub-Sahara Africa

Abstract. Inequality in the sub-Saharan Africa has been on the high side compared to other regions of the world. The policy makers in the region are aware of this and have implemented several policies to stem it. Among the solutions is inclusive growth and strong trade reforms. However, the trade position is still not encouraging even though it is rising. One major factor inhibiting trade and hence inequality is costs attached to the movement of goods across border, that is, trade facilitation. This study investigated the effectiveness of trade facilitation on inequality in a panel of 38 SSA countries spanning from 2005 to 2012. The results show that not all trade facilitation variables contribute to reduction in inequality. While reduction in time required to export significantly reduce inequality, time required to import, and to set up a new business worsened inequality. Custom efficiency is effective and has positive impact on inequality, that is, inequality is less, and the more efficient Customs are. Following these findings, authorities in the region will do well in addressing inequality issues by paying more attention to transaction challenges facing exports and custom efficiencies . Keywords. Inequality, Trade facilitation, Generalized method of moments, Logistic index. Jel. D63, F18, B23, F13.

Export Diversification Effects of the WTO Trade Facilitation Agreement

Summary We estimate the effects of trade facilitation on export diversification, as measured by two extensive margins: the number of products exported by destination and the number of export destinations served by product. To address causality we use only exports of new products, or exports to new destinations. We find a positive impact of trade facilitation on the extensive margins of trade. The results are robust to alternative definitions of extensive margins, different sets of controls, and various estimation methods. Simulation results suggest substantial extensive margin gains from trade facilitation reform in Sub-Saharan Africa and in Latin America and the Caribbean.