Trade effects of trade facilitation revisited

Amjad Masood and Inmaculada Martínez-Zarzoso

Economics Letters, 2024, vol. 234, issue C

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.

Keywords: Trade facilitation; Digitization; Bilateral trade; OECD; Structural gravity model (search for similar items in EconPapers)
JEL-codes: F10 F14 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523005037

DOI: 10.1016/j.econlet.2023.111477

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