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Making small firms happy? The heterogeneous effect of trade facilitation measures

Lionel Fontagné (), Gianluca Orefice () and Roberta Piermartini

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: The different facets of trade facilitation may impact het-erogeneously exporters of different size and productivity. Using the cross-sectional variation in procedures at the border, we identify how red tape affects trade through the extensive and/or the intensive margin and show that small and large exporters are affected differently. We observe that while information availability benefits both small and large exporters, other measures like advance ruling, appeal proce-dures and the automation of border formalities tend to favor large exporters. This result suggests that trade facilitation policies affect exporters through channels other than simply the fixed or variable cost component of the red tape barriers. Beyond affecting the size and composition of trade flows, uncertainty about the conditions of crossing borders plays an important role in shaping the demography of exporters across different destinations.

Date: 2020-01-12
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-02444887
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Published in Review of International Economics, Wiley, 2020, 34 p. ⟨10.1111/roie.12463⟩

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Journal Article: Making small firms happy? The heterogeneous effect of trade facilitation measures (2020) Downloads
Working Paper: Making small firms happy? The heterogeneous effect of trade facilitation measures (2020)
Working Paper: Making small firms happy? The heterogeneous effect of trade facilitation measures (2020)
Working Paper: Making (Small) Firms Happy. The Heterogeneous Effect of Trade Facilitation Measures (2017) Downloads
Working Paper: Making (Small) Firms Happy. The Heterogeneous Effect of Trade Facilitation Measures (2017) Downloads
Working Paper: Making (Small) Firms Happy. The Heterogeneous Effect of Trade Facilitation Measures (2016) Downloads
Working Paper: Making (Small) Firms Happy. The Heterogeneous Effect of Trade Facilitation Measures (2016) Downloads
Working Paper: Making (small) firms happy: The heterogeneous effect of trade facilitation measures (2016) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-02444887

DOI: 10.1111/roie.12463

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