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

Cecília Hornok

No 8451, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 identication. 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)
Date: 2011-06
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Citations: View citations in EconPapers (12)

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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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