Trade obstacles, inventory level of inputs, and internationalization of enterprise activities: a comparison between Southeast Asia and Latin America

Yasushi Ueki

No 474, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper investigates the impact of trade barriers such as customs clearance, subjective trade obstacles (customs and trade regulations), and inventory of inputs on the internationalization of enterprises in Southeast Asia and Latin America, using the World Bank's enterprise surveys. Empirical results show a negative association between the internationalization of enterprises and subjective trade obstacles, while the impact of subjective trade obstacles is not significant on enterprises already internationalized. An international comparison between Southeast Asia and Latin America suggests that enterprises in Latin America face unfavorable conditions that discourage them from becoming more closely inserted into international production networks.

Keywords: Southeast Asia; Latin America; International trade; Exports; Business enterprises; Export propensity; Export intensity; Trade cost; Inventory control (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 2014-08-01
New Economics Papers: this item is included in nep-int, nep-lam and nep-sea
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 474. 2014-08-01

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