Need for Speed: Is Faster Trade in the EU Trade-Creating?

Cecília Hornok

No 75, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: Timeliness has gained growing importance in international trade. This paper provides empirical evidence on the significant cost of time in trade by exploiting the quasi-experimental nature of the European Union (EU) enlargement in 2004. It applies a difference-in-difference-in-differences econometric strategy on a European industry-level database of bilateral trade barriers, where industries are differentiated according to their time sensitivity. The use of a treatment intensity indicator that captures the decline in the waiting time at borders supports the identification. Results are cross-checked on subsamples defined along transport mode choice probabilities, where intra-EU transport mode choice projections are obtained from an estimated discrete choice model on extra-EU trade. Robustness checks experiment with alternative definitions of treatment sensitivity and treatment intensity.

Keywords: time cost of trade; difference-in-difference-in-differences estimation; treatment intensity; EU enlargement; transport mode choice (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 (search for similar items in EconPapers)
Pages: 38 pages including 20 Tables and 6 Figures
Date: 2011-04
New Economics Papers: this item is included in nep-eec, nep-eur and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Need for Speed: Is Faster Trade in the EU Trade-creating? (2012)
Working Paper: Need for Speed: Is Faster Trade in the EU Trade-creating? (2011)
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