An Empirical Study on the Impact of Trade Facilitation on Chinese Exports to South American Countries: The Case of Commodities and Electronic Products

Xinru Luan (), Jungsuk Kim (), Sook Rei Tan () and Jacob Wood
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Xinru Luan: Independent Scholar
Jungsuk Kim: Sejong University
Sook Rei Tan: James Cook University

Chapter Chapter 3 in Innovation-Driven Business and Sustainability in the Tropics, 2023, pp 29-52 from Springer

Abstract: Abstract After the significant reduction in tariffs, trade flows are more influenced by other factors, one of which is trade facilitation, and it has been increasingly researched and mentioned. This study attempts to assess the impact of South American countries’ logistics performance on exports of Chinese products. We use the Logistics Performance Index, tariffs, and FTA signature as comprehensive indicators to reveal the level of trade facilitation. To investigate the impact, the gravity model with Feasible Generalized Least Square was conducted. We found that LPI has a positive correlation with China’s exports in relation to all commodity trade and E-products at 2-digit HS code level. However, tariffs and signing agreements have mixed effects. For E-products at 4-digit HS code level, LPI has no significant impact on trade, while signing an FTA can lead to a significant decrease in the export of China.

Keywords: Logistics performance index (LPI); Trade facilitation; Gravity model; Electronic products; South America; China (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-2909-2_3

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DOI: 10.1007/978-981-99-2909-2_3

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